China: Car sales down for the first time in 2 years image

China – Car sales in the world largest auto market dipped 0.1 percent in May from a year earlier, marking the first decline in more than two years the official China Association of Automobile Manufacturers (CAAM) said on Thursday.

That compared with 1.14 million units sold in April, representing a 2.79 percent rise from a year earlier, according to CAAM data.

Moreover, along with it came the shrink of production volume among Chinese automakers. According to statistics from CAAM, car production volume in May dropped by 10 percent month-on-month to 1.04 million units.

In May, GM China said its sales number in China is 190,674, down by 2.7 percent year-on-year.

The Chinese market may continue to soften in the summer months, a traditionally slack season for car sales, followed by a moderate rebound in autumn, industry observers say.

“June and July have never been the best months for auto sales and flat growth would be the best scenario this year,” said Jenny Gu, J.D. Power’s senior market analyst based in Shanghai. “Demand may pick up a bit in autumn, but it’s unlikely to be anything close to the surge in 2009 and 2010.”

As result, on Wednesday, the government announced a “Cash for Clunkers” incentive scheme to pay 11,000 yuan-18,000 yuan ($1,700-$2,800) for old farm vehicles, city buses and heavy trucks headed for the scrap heap.

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                       May   pct change  y-t-d       pct     	
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 NATIONAL TOTAL BY CAAM         	
Cars                  1,042,900     -0.11   6,028,000     6.14  

Vehicles              1,382,800     -3.98   7,916,200     4.06  

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 The following table shows passenger car and vehicle sales in
May and year-to-date by manufacturers (units; percent     	
changes are from a year earlier).          	
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                       May   pct change   y-t-d     pct   	
---------------------------------------------------------------
  Hyundai Kia         80,119     13.9        NA        NA
   DF Yueda Kia       31,160     23.0
  Chery (exports)     14,110     76.2       55,249    83.8
  Mercedes-Benz       16,960      NA        78,140    70.0
  Ford Motor          45,162     14.0      230,068    15.0
   CFM                32,996     19.0      173,189     4.0
   Jiangling Motor    NP          NA        90,055    23.0
  Honda Motor         27,204    -31.9      236,264    -8.9
   Guangqi Honda      15,003    -27.6      130,542   -16.0
   Dongfeng Honda     12,201    -36.6      105,722     1.6
  Mazda Motor         18,634      1.0       86,319    -0.4
   FAW Mazda          11,508      4.0        NA        NA
   CF Mazda            7,126     -3.0        NA        NA

  Toyota Motor        38,500    -35.0      294,900    -2.1
  General Motors     190,674     -2.7    1,079,624
4.6
   Shanghai GM        96,219     11.1        NA        NA
   SAIC-GM-Wuling     93,997    -10.8        NA        NA
   FAW-GM              3,809    -43.8        NA        NA
  SAIC Motor        304,423        5.4    1,686,342    13.6
   Shanghai VW        91,968     25.1      478,828    32.0
   Shanghai GM        96,188     15.5      507,600    24.3
   SAIC Own brand     12,808    -21.3       68,380     6.5
   SAIC-GM-Wuling     95,008    -10.5      557,490    -4.1
  Dongfeng Motor     160,288      0.3      893,606    10.3
   Dongfeng Nissan   120,959     12.2      652,580    21.5
   Dongfeng PSA       30,211      1.3      163,257     8.8
   Dongfeng Honda     12,201    -36.6      105,722     1.6
   Own brand cars      2,186     -1.8       12,173   -15.6
   BYD                41,051      NA        199,900     NA
   Volvo               4,000     82.0       NA          NA
   Audi               25,200     44.6       NA          NA	
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