In November, auto sales in China reached the highest level in almost two years, surpassing analysts’ estimates.
Auto sales in China last month reached 1.46 million units, up 8.75%, according to China Association of Automobile Manufacturers. This number surpassed the analysts’ estimates of 1.42 million vehicles. The growth was reached thanks to dealerships’ increased discounts to reduce stockpiles at the end of the year and improved economy.
“There’s still strong pent-up demand,” said Ivo Naumann, Shanghai-based managing director at consulting company AlixPartners. “If you wanted originally to buy a car in March and you didn’t buy because you weren’t sure about the economy, now seven, eight months later, at some point you want to have your car.”
Total sales of vehicles, including buses and trucks, reached 1.79 million units, an increase of 8.2%. SUV sales were up 18% in November, to 189,200 units, and 26% to 1.79 million from January to November. Passenger-vehicle sales reached 14 million, an increase of 7.1%, while commercial-vehicle deliveries were up 5.6% to 329,700 units last month. The Association says that sales might exceed 19 million by the end of 2012, as December is the ideal month for auto sales.