China’s auto market exceeded analysts’ expectations for the fourth consecutive month with increased sales in June.
Multipurpose and sport utility vehicles’ sales were up 16% to 1.28 million units in June, compared to the analysts’ estimation of 1.27 million. Honda and Toyota led sales in China, which means that the Japanese auto makers managed to recover form the 2011 earthquake and tsunami. The growth in sales in June also led to increased shipments before the traditional plant closures in July and August.
“Carmakers typically shut factories for a period in summer for routine maintenance and are boosting dealership stockpiles before it,” said Han Weiqi, a Shanghai-based analyst at CSC International Holdings Ltd. “This comes at the cost of bigger inventory pressure at dealerships.”
From January to June passenger-vehicle deliveries were up 7.1% to 7.61 million vehicles. In June total vehicle sales were up 9.9% to 1.58 million vehicles, while sport-utility vehicle sales increased 52%. GM, China’s largest foreign automaker, saw vehicle sales up 10% to 213,495 units, mainly due to the Wuling minivans and Buick sedans. Ford’s sales were up 18% to 52,440 units, Honda increased 84% to 64,652 units and Toyota sold 70,500 units in June, up 19%.