Percentage of Smaller, Low-Emission Cars in New Vehicle Sales Dropping in China

Global Times. The market share of new vehicles sold in July in China with engine displacements of 1.6 liter and less dropped below last year’s average for a fifth straight month.

China posted 1.24 million vehicles sold in July, according to figures from the China Association of Auto Manufacturers (CAAM), representing a 14.4% increased year-on-year, but down 11.9% from June. Auto sales growth from January to July slowed to 42.65% from 47.67% over the first six months.

In July, smaller cars accounted for only 65.38 percent of overall passenger vehicle sales, which totaled 946,200 units, declining 1.42 percentage points month-on-month and dropping below last year’s average of 69.5 percent for five months in a row. Likewise, the market of China-developed cars, most of which fit into the small car category, also declined.

A total of 377,700 self-developed passenger vehicles were sold last month, accounting for 39.92 percent of total passenger vehicles sales, a drop of 4.5 percentage points comparing with that of June. Unlike three in June, only one self-developed sedan, BYD’s F3, made it into the month’s top 10 best-selling sedans.

CAAM’s executive vice chairman and secretary general Dong Yang said the impact of the green car subsidy program put in place in June, which provides 3,000 yuan (US$443) per unit to 71 fuel-efficient models with engines 1.6 liters and smaller, hasn’t had an effect. More incentives are planned to boost small vehicle sales.

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