China Auto Sales Slow Down - Analyst Blog
April 15 2013 - 8:40AM
Zacks
Passenger vehicle sales in China slowed down in March compared
to the first two months of the year, mainly due to the stricter
regulation imposed by the government on vehicle ownership aimed at
controlling increasing pollution and traffic congestion in the
country. According to the China Association of Automobile
Manufacturers (CAAM), passenger vehicle (cars, multipurpose and
sport- utility vehicles) sales rose 13.3% to 1.59 million units in
March compared with a 19.5% increase in Jan–Feb this year.
Passenger vehicle sales grew 17.2% to 4.42 million units in the
first quarter of the year, which is higher than 7.1% growth
registered in 2012. Thanks to the steep discounts that kept
passenger vehicle sales at a higher level in the world’s biggest
auto market. Total vehicle (passenger vehicles, buses and trucks)
sales grew 13.2% to 5.4 million units in the first three months of
the year compared with 4.3% to 19.3 million vehicles in 2012.
Ford Motor Co. (F) and Korea’s Hyundai Motor Co.
continued to be the biggest gainers in the month. Ford posted a
staggering 65% rise in sales to 81,387 vehicles while Hyundai
reported a 26.8% rise in sales to 129,355 units in the month.
Considering the first quarter of the year, Ford’s sales went up 54%
to 186,000 vehicles while Hyundai’ sales escalated 41.0% to 260,716
units.
General Motors Company (GM) and its Chinese joint
venture partners sold 290,538 vehicles in the month, up 12.6% from
March 2012. It was the company’s second-highest monthly sales ever
recorded in China. In the first quarter of the year, GM’s sales
increased 9.6% to 816,373 vehicles, overtaking Volkswagen
AG (VLKAY), led by burgwhich is higher than 7.1% growth
registered in 2012eoning demand for its Buick lineups. Volkswagen
reported a 21% rise in sales to 770,000 vehicles in the same
period.
Japanese automakers continued to be the losers due to the political
conflict between Beijing and Tokyo over disputed islands in the
East China Sea. Sales of Japanese brands, including Toyota
Motor Corp. (TM), Nissan Motor Co.
(NSANY) and Honda Motor Co. (HMC), fell 17.8%
during the month.
Among the Japanese automakers, Nissan posted the steepest 17% fall
in sales to 110,000 cars in March. Meanwhile, Toyota and Honda
reported a decline of 12.0% and 6.6% in sales to 61,108 and 75,900
units of passenger vehicles, respectively. Considering the first
quarter of the year, sales dipped 15.1% for Nissan, 12.7% for
Toyota and 5.2% for Honda.
According to the Chinese government, total vehicle sales in China
are expected to rise 7.8% to 20.8 million vehicles in 2013 from
19.3 million last year, led by strong demand for passenger vehicles
and economic recovery. The CAAM believes SUVs will remain the
fastest- growing segment in the year while commercial vehicles will
record a moderate gain in sales.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
VOLKSWAGEN-ADR (VLKAY): Get Free Report
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