After two months of small declines, the Chinese car market returns to a modest growth with sales up 3,2% to just under 1,79 million units. However, there have been reports that the June sales figures are artificially boosted by heavy discounts as 2017 sales threatened to lag behind 2016. Again, crossovers and SUVs are the only type of vehicle to improve year-over-year, with a 16% increase to 741.400 sales. Meanwhile, sedan sales were down 4,3% to 883.000 and MPV sales dropped 3,7% to 163.700 units. Within those sales figures, electric cars and PHEVs also showed a nice improvement of 33% in June to 59.000 units, of which 48.000 EVs and 11.000 PHEVs. For the first six months, sales of New Energy Vehicles totaled 195.000 (160.000 EV and 35.000 PHEV), an improvement of 14% due to a slow first quarter when the government reduced tax incentives on this type of vehicle. New Energy Vehicle sales represented less than 1,5 percent of China’s total new-vehicle volume in the first six months, but the Beijing government holds on to its target of 6,7% in 2020 and as much as 20% by 2025, helped by a carbon credit scheme that will be imposed in 2018.
The Seasonally Adjusted Annualized selling Rate in June stood at 23,2 million, up from the last two months and the third-highest figure of the year so far. The share of domestic automakers was similar to that of May at 40% as all the growth in the market came from domestic brands while sales of import brand cars were stable. Year-to-date, the share of domestic brands now stands at 42,25%. First half car sales in China now total just over 10,9 million units, an increase of 3% on the first half of 2016. However, average transaction prices dropped 4% over the first half of 2017.