China Passenger Vehicle Sales Up 11% in July As New Plants Come Online But Continued Market Growth Threatened As More Cities Regulate Vehicle Registrations

TTAC Staff
by TTAC Staff
china passenger vehicle sales up 11 in july as new plants come online but continued

Sales of passenger vehicles in China were up 11% in July as new assembly plants have opened and as dealers cut prices to clear out inventory before 2014 model year cars start arriving. The state sponsored China Association of Automobile Manufacturers says that wholesale deliveries of automobiles, SUVs and multipurpose vehicles were up to 1.24 million units in July, beating analysts’ expectations. Among the companies that have opened up assembly plants this year in China are Ford, PSA Peugeot Citroen and Chinese owned Volvo.

The new capacity is planned to fill demand for an anticipated 20 million units this year and as many as 30 million by 2020 as the Chinese market continues to grow. So far in 2013, 12.3 million units have been delivered. While market growth is expected to continue for cars and light trucks in China, there are potential problems. According to some reports, Tianjin and Wuhan may join four other cities, including Beijing and Shanghai that are already trying to reduce ownership of private vehicles to alleviate congestion and reduce pollution. Other reports say as many as eight additional cities are considering implementing those regulations.

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  • They should thank our politicians for giving them our jobs!

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    • Lie2me Lie2me on Aug 13, 2013

      @Superdessucke I don't understand your logic. If you want to sell cars in China you build a factory there, build and sell them cars at a profit. If you don't build a factory there no sale no profit. Where is it costing American jobs? If anything, by building and selling cars in China it helps the automaker stay solvent thus insuring there are jobs to go to back home

  • Big Al from Oz Big Al from Oz on Aug 12, 2013

    It seems that the Chinese will become a force to reckon with in the future of the global motor vehicle industry. I also foresee Australia as being probably one of the first Western nations to 'embrace' their vehicles, we have already started going down that road. We have little choice, we have a very liberal economic base to work from. But, also and importantly is our trading position with the Chinese. Essentially the Chinese owe us money, so if we want to keep on exporting to the Chinese our raw materials I think we will import their vehicles. Once the Chinese (within a decade) can produce globally competitive vehicles many countries will probably adopt harsher protectionist measures like the US. It also appears the Chinese have played their hand well. Look at the manufacturing companies that are producing vehicles in China. The Western auto manufacturers who have set up shop will be 'influenced' to export to their other global markets. Cars will be like cordless drills, bought cheaply and recycled. Once the Chinese vehicle exports start to take on global markets, we will wonder why we are bickering amongst ourselves and why we didn't work together more closely as free nations. The dynamics of motor vehicle industry is about to change. But Australia will profit from it more than most.

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    • Doctor olds Doctor olds on Aug 14, 2013

      @Lie2me Wouldn't you think that citing the Toyota Camry as the best selling car might be a hint of data to suggest the US market my actually be open to foreign competitors? Camry sales volume is just a fact. Thinking the market is closed despite that fact is weird.

  • Old Man Pants Old Man Pants on Aug 12, 2013

    All the cars in that photo.... what is that slovenly mess? Not a manufacturer's yard I hope,

  • Doctor olds Doctor olds on Aug 14, 2013

    The Chinese market has a long way to grow. Even with suppression of vehicle populations in the many huge cities, those areas will continue to demand more, and increasingly more upscale vehicles. It is a great place to sell cars! China does have great poverty. A billion or not in the market for something as costly as a motor vehicle. On the other hand, there are 300 million who are doing pretty well! The growth opportunities are in the smaller cities. Those with only a million or suppose. That's why GM launched its newest brand, Baojun. It will be less expensive and tailored for lower income areas. With the lead in electrification, the best selling brand and a growth strategy in more rural china, GM will do well.