Car sales in China are up 3% in February to 1.348.856 units, after growing 11% in January. However, as the week-long Lunar new year holiday moves between January and February, it can influence car sales in those months. Therefore most analysts prefer to compare combined January and February sales to the year before, as it gives a more realistic picture of the direction of the market. And that direction is still up, helped by the continued tax cut on small vehicles (up to 1.6 liter engines). In the first two months of 2016, the Chinese car market has grown 7,75% to just over 3,5 million vehicles. The share of local brands continues to reach record levels, now at 44,84%, up from 39,14% in February 2015 and from the previous record of 43,29% last month. The other trend we’ve witnessed in the last year also continues: SUVs gain 55% to 1,27 million sales and MPVs add 14% to their volume to 436.000 sales, while sedans drop 13% to 1,78 million sales. If this trend continues, SUVs will outsell sedans sometime in the next year or so.
The Volkswagen Lavida (excluding Gran Lavida) is the only import brand model in the top-5 and trails the perennial leader Wuling Hongguang by a mere 338 units in February, but is still way behind in the first two months. The Haval H6 is under continued pressure from the Baojun 560 for the title of China’s best selling SUV, while the GAC Trumpchi GS4 moves into third place of that segment and 10th overall, making it 5 Chinese models in the top-10. The renewed Buick Excelle XT and GT are the fastest growing models in the top-10 and the Buick Envision is the fastest gainer in the top-20. [Read more…]