Based on wider dealer discounts, check offered to clear inventory and increased production by the automakers, China’s passenger-vehicle sales rose 10.5% last month.
The wholesale deliveries of cars, MPV’s and SUV’s climbed to 1.24 million units last month, according to the state-backed China Association of Automobile Manufacturers announcement made today.
“There is an element of push from automakers,” said Ole Hui, a Hong Kong-based analyst with Mizuho Financial Group Inc. “They have all increased capacity and therefore have the incentive to push for more volumes and use more discounting.”
Sales of SUVs, the fastest growing segment in the first half of 2013, rose 45% to 235,000 units. Sedan deliveries gained 7 percent to 840,400 vehicles. Ford Focus was the best-selling sedan last month, with Great Wall’s Haval line remaining the top-selling SUV.
Companies are stepping up production to cater to the demand of the world’s largest vehicle market, where sales are projected to exceed 20 million units this year and 30 million by the end of the decade – with Ford Motor Co., PSA Peugeot Citroen and Volvo Cars among the automakers opening assembly plants in China this year.