Chinese Auto Market in 2019 has worsened, signing the second negative year in a row. Indeed, the Full-year ended at 25.5 million, down 7.2% from the previous year. Despite the negative environment, Honda and Toyota were moderately growing.
Economic Environment
Chinese economic growth momentum remains weak. Industrial production was subdued in October, as the trade war with the U.S eroded manufacturing activities. This trend is expected to continue in the coming months as corroborated by a new drop in exports in November.
Moreover, mounting economic uncertainty is postponing investment plans, especially among foreign firms.
Meanwhile, on 13 December, President Trump agreed to a limited trade deal with China, effectively barring a fresh round of tariffs due on 15 December. As part of the deal, U.S. officials stated that China will purchase more U.S. agricultural products, while the U.S. will remove some existing tariffs in return.
Market Trend
Chinese domestic vehicles market has reduced the growing speed since 2016, after having achieved the 30% of global sales. The future evolution is clearly driven more by real solution regarding the two main issues created by the last decade market boom, pollution and traffic congestion.
Chinese government has shifted its attention from total volume to engine mix and is progressively creating incentives to small and low emission vehicles, while supporting investment in the AFVs, mainly electric. In this direction, in January 2017 it has been increased the duties for vehicles with engines displacements over 1.6 liter (from 5% to 7.5%). During the 2017, sales have been 28.2 million, up 0.9%.
The Chinese government announced on 22 May 2018 that the customs duty for CBUs had to be reduced from 25% or 20% to 15% from 1 July 2018, and that the duty for auto parts were being cut simultaneously to 6%. This adjustment means that Passenger Vehicles (PVs) had been taxed at 15% since last July, instead of the previous 25%.
However, in the 2018, new light vehicles sales (including both domestic produced and import) have progressively lost steam, following the deceleration of the domestic consumer demand. Indeed, The market interrupted the positive trend of recent years losing for the first time since ’90s and closing the 2018 with 27.5 million units sold (-3.7%).
In 2019, according to the data released by the Chinese Association of Automobile Manufacturers, the market worsened. Indeed, the Full-year ended at 25.5 million, down 7.2% from the previous year.
In the competitive arena, Volkswagen held the crown with 12.2% of market share, thanks also to the Lavida, which is currently the country’s best-selling car. With almost half of Volkswagen’s share, Honda, in second position, ended at 6.3%.
Toyota – overtaking Geely – takes the third position, improving 8.8% from the previous year. Geely – ending at 5% of market share – declined by 7.6%.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models
