The auto market in China continues to increase and reached its strongest start since 2010, although indicators show that auto demand is slowing in this market.
In January and February, wholesale deliveries of cars, multipurpose vehicles and SUVs increased 20% to 2.84 million units from 2.37 million units in 2012, according to the China Association of Automobile Manufacturers. Even if in February sales dropped due to the Lunar New Year holidays, they still managed to surpass analysts’ estimates.
Ford and Hyundai reported sales increased more than 40% in January and February, helping the auto market to see a slight growth after it showed signs of slowing down in overall Chinese industrial production and retail sales. Analysts predict that sales this year will surpass 20 million units, due to rising incomes and urbanization.
Hyundai saw its sales reach 177,000 units in January and February, while Ford hit 105,000 units. GM China sold 525,835 units, up 7.9%, while Nissan, Toyota and Honda reported declines as Japanese automakers still suffer after the territorial dispute riot which sparked in China in mid-September. Audi, the top selling luxury automaker in China, saw an increase of 16%, while Mercedes-Benz increased 39% to 26,829 units.