Thanks to rising demand for sport utility vehicles and minivans, passenger vehicle deliveries in China, the world’s top-selling auto market, jumped in March by 12 percent.
Retail sales of cars, multipurpose and SUVs soared to 1.78 million autos last month, according to a statement on its website by the China Passenger Car Association. Sport utility vehicle deliveries jumped 64 percent during the period and minivan sales also rose 26 percent, while the figures showed that sedans were actually on a negative trend – down slightly, by 0.6 percent. According to analysts, the demand was buoyed by replacements or families that were purchasing now their second model, with sport utilities one of the obvious choices in their search for efficiency. The demand was buoyed by automakers introducing numerous SUV models in the past few years. Global automakers from Ford to Mercedes-Benz have also constructed numerous new factories in China in the past two years, attracted by the millions of first-time buyers and the surging replacement demand.
After the first three months of the year, forecasts and predictions by automakers, analysts and industry insiders don’t seem to pan out, as the sales continue to grow at a rapid pace, lifting prospects in the world’s largest auto market, which has been envisioned rising only 9 percent in 2015, after predictions for the slowest economic growth since 1990. Additionally, a Chinese manufacturing benchmark registered a revival last month after the country’s central bank lowered the interest rates twice in the past half year to lift demand in the globe’s second-biggest economy.