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.