AutoBeta(AutoBeta.net)12/17 Report--

According to the Ministry of Commerce, in view of the situation of China's consumer market from January to January 2020, the Ministry of Commerce said today that with the further effect of the automobile consumption-promoting policy, the domestic automobile market has accelerated its recovery and consumer demand has continued to expand, helping domestic new car sales turn from negative to positive for the first time.

According to the China Automobile Association, the production and sales of new cars in November were 2.847 million and 2.77 million respectively, up 9.7 per cent and 12.6 per cent year-on-year, respectively, down 3 per cent and 2.9 per cent from January to November. This is also the first positive state in the domestic new car market this year, while production is still in a state of negative growth.

Despite the year-on-year increase in total car sales, passenger car production and sales continued to decline compared with the same period last year. From January to November, passenger car production and sales completed 17.651 million and 17.793 million respectively, down 8.1% and 7.6% respectively from the same period last year, which means that this is also due to the zero run of the stronger non-passenger car market this year.

Since the beginning of this year, in the face of the huge impact of the COVID-19 epidemic and the environment of shrinking market sales, the domestic new car market has declined year-on-year since the beginning of January, and has declined significantly for four consecutive months, resulting in varying degrees of impact on all major car brands, and it is difficult for even mainstream brands that are better to sell.

Among them, the pressure of independent brands has become very great in the few months after this year's epidemic, especially the tail of Chinese brand passenger car companies are facing the pressure of survival, while some enterprises are restructuring.

However, with the gradual improvement in epidemic control and the gradual release of a series of favorable policies by the government and the gradual release of accumulated demand for Q1, car sales have achieved the same growth for eight consecutive months since April, and the cumulative decline in sales has narrowed to less than 3 per cent year-on-year.

Specifically, the year-on-year growth of commercial vehicles is very obvious, and commercial vehicles, driven by trucks, still show rapid growth, with sales for the eighth time refreshing the historical record of that month, of which sales of heavy and light trucks have also reached an all-time high for that month, while the passenger car market did not achieve strength until the second half of the year.

Judging from the performance of segmented models from January to November, SUV and crossover passenger cars outperformed the market, of which the cumulative decline in SUV sales has narrowed to less than 1 per cent. While car production and sales still declined significantly, down 11.8% and 11.3% respectively from the same period last year. The production and sales of SUV fell 1.2% and 0.9% respectively compared with the same period last year. MPV production and sales fell 28.6% and 26.3% respectively compared with the same period last year; production and sales of crossed passenger cars fell 3.4% and 3% respectively compared with the same period last year. It can be seen that SUV is still the main sales force in the domestic passenger car market.

Compared with the passenger car market, New year's energy vehicles have performed better this year. The production and sales of new energy vehicles from January to November were 1.119 million and 1.109 million respectively, down 0.1 per cent from a year earlier and up 3.9 per cent from a year earlier. Although the decline in production has narrowed sharply by 9.1 percentage points from January to October, sales have changed from negative to positive from January to October, with a year-on-year growth rate of more than double in November.

For the forecast of the market for the whole year of this year, according to industry analysts, car sales for the whole year are expected to reach 25.31 million, which is still in a downward trend of 1.6% compared with the same period last year. Of this total, passenger car sales were 20.15 million, down 6.0% from the same period last year, while commercial vehicle sales were 5.16 million, up 19.5% from the same period last year.

The China Automobile Association said that in the domestic epidemic prevention and control environment, the industry-wide production rebounded steadily, demand stabilized and picked up, making the market expectations better. In this context, automobile production and sales continue to grow compared with the same period last year, and the industry situation shows a trend of steady progress. However, as the recent shortage of chip supply will also have a certain impact on automobile production in the short term, the production pace of the industry may slow down, but it will not have a greater impact on China's automobile industry.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat