The year-on-year passenger vehicle sales in China have declined 16.5% to 1.17 million units in January, due to the Spring Festival and the New Year holidays. This means that sport-utility vehicles, minivans and multi-purpose vehicles, all have seen negative monthly rates of growth.
“It’s in accordance with our previous expectations of between 15 percent and 20 percent negative growth. The three-day New Year holiday and week-long Spring Festival not only cut production days by almost 50 percent, but also led to a void in the vehicle showrooms,” said Rao Da, secretary-general of the association.
General Motors, which managed to undo Toyota Motor and regain the top spot for vehicle sales in 2011, declared that its sales in China went down 8% and in the U.S. 6%. Shanghai Automotive Industry Corp (SAIC), China’s biggest automaker, also reported a decline of 8.48% to 380,350 units sold in January.
The sales drop has begun since the government’s stimulus measures had ceased, including subsidies and trade-ins, which brought a 46% annual growth in 2009 and 34% in 2010, but only 2.45% in 2011. All in all, analysts are not worried and say that this single-digit yearly growth means a healthy development.