According to the Chinese Passenger Car Association the passenger vehicle market might have seen a growth of 50% in January.
The Chinese Passenger Car Association said that traditionally January is a strong shopping season, with consumer demand for vehicles estimated to be with 9.5% higher compared with the December level. The association estimated that from December to January vehicle orders have increased 8.5% as 21 new models have been introduced last month, increasing sales.
Chinese automaker also performed very well, as well as new brand vehicles which were up 13.9%. Chongqing-based Changan Automobile sold 41,028 own brand vehicles in January, an increase of 163.2% compared with January 2012. Still the Association warns dealerships to be careful on the high inventory levels, as last month the inventory warning index was at 45.26, higher compared with December.
The trade association sees average growth of 7% this year due to the improving mainland economy and stabilizing fuel prices. The Chinese government is trying to limit growth in car ownership because of worsening pollution and traffic jams. LMC Automotive told the South China Morning Post that if commercial trucks were excluded, the growth could reach 10 percent in 2013.