Get ready to see some sales records shattered again: in November the Chinese car market broke its 11-month old record of 2,38 million sales in a single month by 150.000 units to over 2,53 million sales, an increase of 19,6% on last year’s November, which happened to be the first time Chinese car sales topped the 2 million sales milestone. It also means that China has broken 2015’s full-year record of 20,18 million sales already in November, as the year-to-date tally now stands at 21 million sales in 2016. Again, the purchase tax cut on vehicles with an engine of 1,6 liters or less fueled the market, as the central government still hasn’t decided (or at least made public) whether to extend the tax cut into 2017. If they keep this up, next month could be yet another monster month, breaking this month’s record again. Regardless of the outcome, pulling forward these car sales will have a moderating effect on the first few months of 2017, as analysts uniformly agree the next two years will see Chinese car sales plateau. Then again, analysts have been predicting this scenario for a few years now, and they keep getting proven wrong as the Chinese auto market has continued to grow sharply against all odds.
The Seasonally Adjusted Annualized Selling Rate again hit a new record in October at 26,4 million units. Sales of crossovers and SUVs shot up 41% to 1,02 million units, while deliveries of sedans increased 10% to 1,28 million and MPV sales grew 8% to 235.700. The share of local brands dipped from their record of 44,35% in October to 42,42% in November, still above the average of this year, as year-to-date the local brands have a share of 40,67% of their home market, compared to just 37,66% over the full year 2015.