China Auto Sales Recovery Rolls Into Second Month - The Wall Street Journal

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Car dealers in China rolled out campaigns to sell to consumers who are still reluctant... — Car dealers in China rolled out campaigns to sell to consumers who are still reluctant to spend.
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June 11, 2020 3:47 am ET

China’s auto sales jumped 14.5% last month, driven by heavy discounts and promotions, marking a second straight month of gains as they outpaced markets that haven’t recovered from coronavirus-inflicted damage.

A total of 2.19 million vehicles were sold in May, the government-backed China Association of Automobile Manufacturers said Thursday.

While strong sales of commercial vehicles continued to be the main growth engine, the passenger-car sector recorded an increase of 7%, its first since July 2017.

The world’s biggest auto market ended a 21-month losing streak in April with sales growth of 4.4% compared with the same period last year. Sales plunged 79.1% in February, wiped out by the pandemic.

Local and provincial governments, as well as car dealers, rolled out campaigns to sell to consumers who are still reluctant to spend. Dealers warned that those promotions would weigh on demand in the months ahead.

The China Passenger Car Association, another industry group, expects a price battle among car makers and dealerships to intensify in the second half of the year.

Sales of new-energy vehicles, which include electric cars, fell 23.5% last month from a year earlier to 82,000 vehicles, the CAAM said.

Promoting electric vehicles remains high on the agenda of the Chinese government. Premier Li Keqiang vowed to build more charging facilities for electric cars in his government work report last month, and more local governments started offering subsidies to EV buyers. Shenzhen, for example, offers as much as 20,000 yuan ($2,832) for each new vehicle.

Beijing, the only Chinese city that sets quotas for EV purchases, plans to add 20,000 license plates for new-energy vehicles in the second half of this year. New applicants now have to wait for nine years to get a plate.

—Raffaele Huang contributed to this article

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China Auto Sales Recovery Rolls Into Second Month - The Wall Street Journal

Car dealers in China rolled out campaigns to sell to consumers who are still reluctant to spend.

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China Auto Sales Recovery Rolls Into Second Month - The Wall Street Journal

Car dealers in China rolled out campaigns to sell to consumers who are still reluctant to spend.

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