It seems that the market is rather resilient in the light of the ongoing Sino-US trade dispute, but overcapacity in the electric car segment is increasing.
- Strong growth, but overcapacity in the electric car segment
- Rather resilient in light of the Sino-US trade dispute
- Payments take 90-120 days on average
According to the China Association of Automobile Manufacturers (CAAM), domestic vehicle sales increased 3% year-on-year in 2017, to 28.88 million units, a sales increase far lower than the 10% rise seen in 2016. The slower growth was due to higher taxes on smaller cars and subsidy adjustments on electric vehicles. Passenger car sales increased 1.4% (among those SUV sales rose by 13.3%, to 10.25 million units), while sales of minibuses/multi-purpose vehicles plunged 20% and 17% respectively. Commercial vehicles recorded robust demand with sales increasing 14%, to 4.16 million units. In 2018 it is expected that vehicle sales will increase as much as 5% year on-year.
Read the full report here: Market Monitor Automotive China 2018