Auto sales rise at slower pace as economy cools
Sales of passenger vehicles in China rose 9 percent year-on-year to 1.4 million units in May, as consumer confidence waned amid signs that momentum for economic growth is slowing.
By contrast, sales increased 13 percent in April and 13 percent in March, according to the China Association of Automobile Manufacturers.
As sales slowed, inventory levels at dealerships have risen. Government reports Saturday showed trade, inflation and lending in May all trailed estimates, signaling weaker domestic demand that adds pressure on Premier Li Keqiang to shore up economic growth.
Slower sales growth
"Strong inventory building in the first four months of 2013 and a softer [economy in the second quarter] lead us to expect gradually slower sales growth for the rest of the year," wrote Ole Hui, an analyst in Hong Kong with Mizuho Financial Group Inc., in a research note.
Total sales of vehicles, including commercial trucks and buses, gained 10 percent to nearly 1.8 million units last month, the association said.
Vehicle sales for the first half are expected to be between 10 million and 11 million units, China Association of Automobile Manufacturers Secretary General Dong Yang said at a briefing Saturday. He said there's no overcapacity in China's auto industry.
"In the past three decades every time we thought there was overcapacity in the auto industry, we were proved wrong," Dong said.
Strong SUV sales
Sales of SUVs, the fastest-growing segment last year, rose nearly 41 percent to 227,900 units while demand for multipurpose vehicles doubled to 84,600 units. Sedan deliveries gained 5 percent to 940,500 vehicles.
Volkswagen AG's Lavida was the best-selling sedan last month, while Great Wall Motor Co.'s Haval remained the nation's top-selling SUV.
Honda sales rose 5 percent in May, while Nissan deliveries increased 2 percent. Toyota deliveries gained 0.4 percent for the first monthly sales increase in China since January.
As sales slowed, inventory levels at dealerships have risen. Government reports Saturday showed trade, inflation and lending in May all trailed estimates, signaling weaker domestic demand that adds pressure on Premier Li Keqiang to shore up economic growth.
Slower sales growth
"Strong inventory building in the first four months of 2013 and a softer [economy in the second quarter] lead us to expect gradually slower sales growth for the rest of the year," wrote Ole Hui, an analyst in Hong Kong with Mizuho Financial Group Inc., in a research note.
Total sales of vehicles, including commercial trucks and buses, gained 10 percent to nearly 1.8 million units last month, the association said.
Vehicle sales for the first half are expected to be between 10 million and 11 million units, China Association of Automobile Manufacturers Secretary General Dong Yang said at a briefing Saturday. He said there's no overcapacity in China's auto industry.
"In the past three decades every time we thought there was overcapacity in the auto industry, we were proved wrong," Dong said.
Strong SUV sales
Sales of SUVs, the fastest-growing segment last year, rose nearly 41 percent to 227,900 units while demand for multipurpose vehicles doubled to 84,600 units. Sedan deliveries gained 5 percent to 940,500 vehicles.
Volkswagen AG's Lavida was the best-selling sedan last month, while Great Wall Motor Co.'s Haval remained the nation's top-selling SUV.
Honda sales rose 5 percent in May, while Nissan deliveries increased 2 percent. Toyota deliveries gained 0.4 percent for the first monthly sales increase in China since January.
