The Chinese car market continue sits steady growth in September, showing a 3,4% increase to almost 2,3 million sales of passenger cars. This is the fourth consecutive month of single digit increases after years of booming growth. It also builds confidence in the belief that the market will continue its winning streak in 2017 and finish the year in positive territory despite an exceptionally strong last quarter of 2016. That brings the year-to-date total to almost 16,8 million sales, an increase of 3,7% on the same period in 2016. In absolute terms, 2017 is ahead of last year by 600.000 sales, which means the likelihood of yet another new sales record is becoming greater by the passin gmonth. We’d need at least an 8% sales decline in the last quarter to see the first annual decline in a few decades in China. Even considering the exceptionally strong finish of 2016, that seems pretty unlikely, especially taking into account the sales tax on cars with engines of 1,6 liter and smaller will increase again in January, from 7,5% back to its normal rate of 10%, which should pull forward sales of this kind of vehicle to the last quarter. Back to September: the crossovers and SUV trend seems unstoppable with yet another double digit gain: +10% to 971.000 sales, while sedans improve 3,7% to 1,16 million sales and the decline of the MPV segment accelerates to -25% to 165.900 sales. Within those sales figures, electric cars and PHEVs also showed a impressive improvement of 79% in September, to almost 78.000 sales. EVs were responsible for most of that growth, as sales increased 83% to 64.000, compared to a 62% increase for PHEVs, to 14.000. These figures add up to 325.000 EV and 73.000 PHEV sales in China so far this year, an increase of 38% on the first 9 months of 2016 and 2,4% of the overall market. The Beijing government has set a 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 August stood at 25,8 million, a similar level as last January, which has been the highest so far this year, and up by 850.000 on August, marking the 6th consecutive month of increased SAAR. The share of domestic automakers in September was 39,8%, the highest figure in the past 3 months and down from 41,8% in September 2016. Sales of domestic brand vehicles across all segments were down 1,5%, compared to a gain of just 2% for US brands, +12% for Japanese brands and +15% for European brands. In contrast, South-Korean brands are down for the 9th month this year, by 23%.