A strong April for the Chinese auto market image

Passenger-vehicle sales are keeping a steady growth pace on the world’s largest auto market, as April figures rose by 6.4 percent.

Even if China’s auto market has lately slowed down, as the country entered a period of unprecedented economy uncertainty, it is still on a solid upward momentum, with sales rising in April for the eighth time in nine months. The only sales slip this year was recorded in February, when the demand was hampered by the Lunar new year celebrations. The market returned to a 12 percent growth the following month, for April to now show the sales of cars, SUVs and commercial vehicles to rise 6.4 percent to 1.72 million units according to the China Passenger Car Association. From the beginning of the year, deliveries climbed 6.7 percent to 7.36 million vehicles. While car sales declined 4.5 percent for the month, the figures have been pushed up once again by SUVs, which surged 36 percent in April.

The association said in January that it expected the market to grow 6 percent this year, after car sales nearly contracted in 2015 before a fourth quarter recover, thanks to a tax cut on small engine vehicles introduced in October that extends until the end of 2016. However, some analysts say that the government should not rely anymore on such short-term policies, as there is a high risk of steep contraction once such measures expire.

Via Bloomberg