China July. Honda & Nissan shining while the market lost 4.2%

World Car Group Ranking

Chinese Auto Market marked the 13th consecutive drop in July, with 1.783.351 sales (-4.2%). Volkswagen held the previous months’ negative trend, while Honda and Nissan improved in double-digits. Outstanding performances scored by Mercedes, gaining the 9th place.

 

Economic Environment

Chinese economic growth dipped to a 27-year low in the second quarter, and the economy likely continues to falter in Q3 amid the trade war with the U.S. Throughout January–July, investment growth slowed, while, in July, industrial production expanded at a near two-decade low and retail sales growth moderated. Meanwhile, in mid-August, the U.S. postponed imposing a 10% tariff on some Chinese consumer products from 1 September to 15 December, which should aid exports ahead of the Christmas season.

In the same month, the IMF applauded the government during an Article IV visit for strengthening financial regulations, continuing to open up the economy and tightening control over local government expenditure to reduce the speed of debt accumulation; however, the Fund also noted that further reforms regarding state-owned enterprises are needed in order to increase competition and improve credit allocation.

 

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, according to the data released by the C.A.A.M., (China Association of Automobile Manufacturers) new light vehicles sales (including both domestic produced and import) have progressively lost steam, following the deceleration of the domestic consumer demand.

Indeed, after a positive start, the market has performed negatively during the second half of the year, ending with sales down 3.7%. The market has interrupted the positive trend of recent years losing for the first time since ’90s and closing the 2018 with 27.5 million units sold.

The 2019 kept declining in January – the 7th month in a row – signing the third consecutive double-digit drop, with sales at 2.332.165 (-16.3%). February were down again signing -17.6% and 1.421.311 units.

In March, the market dropped down in double-digit (-13.7%) with 2.309.609 units.

The market shows no improvements (-15.6%) in April, with 1.855.118 units, and in May with 1.683.264 sales (-24.9%). In June, sales kept the same tone, losing 19% – with 1.795.655 units.

In July, marginally decreased (-4.2%) with 1.783.351 sales, leading year-to-date figures at 13.846.189 (-11.4%).

 

Market Outlook

After the recent years’ decline, the Chinese market is expected to recover over the 2019-2025 period of time. Indeed, on the economic front, fiscal and monetary easing are expected to cushion the economy against any sharp slowdown, while a further deterioration in relations between China and the U.S. is the main downside risk.

Being interested to know more, give a look at this updated research. Clicking on the picture, you can see contents.

 

Competitive Arena

The year-to-date market leader was Volkswagen selling 1.669.028 units (-7.1%) and holding 12.1% of market share.

In second place, Honda has soared to 14.4% with actual figures at 870.471 units, followed by Toyota with 855.305 (+10.4%) few units ahead of Geely with 688.759 (-17.5%).

In fifth place Nissan with 657.087 units (+1.3%) followed by Changan with 619.351 (-15.6%), Wuling 554.605 (-10.5%), Buick with 495.634 (-15.8%), Mercedes with 427.313 (+6.8%) and in 10th place by BMW with 404.956 (+19.7%).

At model-wise, the Volkswagen Lavida has consolidated the leadership with 287.173 sales (+3.5%) ahead of the Nissan Sylphy with 237.226 (-3.3%) and the Haval H6 with 205.592 (-16%).

The list of Chinese Best Selling models ranking for the current and previous year is available in dedicated section.

Rank 2019Rank 2018BrandSales YTD July 2019Sales July 2019'+/- YTD 2019'+/- Jul 2019Share YTD July 2019Share July 2019
11Volkswagen1.669.028232.100-7,1%-2,5%12,1%13,0%
22Honda870.471120.00714,4%15,0%6,3%6,7%
34Toyota855.305122.38910,4%-1,3%6,2%6,9%
43Geely688.75983.703-17,5%-23,9%5,0%4,7%
55Nissan657.08786.5721,3%12,9%4,7%4,9%
66Changan619.35169.303-15,6%-4,5%4,5%3,9%
77Wuling554.60569.013-10,5%-5,7%4,0%3,9%
88Buick495.63454.286-15,8%-21,7%3,6%3,0%
915Mercedes427.31359.6606,8%39,8%3,1%3,3%
1016BMW404.95657.90119,7%10,3%2,9%3,2%
1111Haval395.76042.8889,1%15,0%2,9%2,4%
1212Dongfeng368.39238.186-23,3%-10,0%2,7%2,1%
1313Audi357.01859.074-2,0%25,4%2,6%3,3%
1410Hyundai324.08548.275-25,9%31,1%2,3%2,7%
1514Chevrolet321.11640.603-16,3%-18,6%2,3%2,3%
169Baojun292.98341.923-44,9%-26,5%2,1%2,4%
1718Roewe236.30733.071-13,7%2,2%1,7%1,9%
1821Chery217.87530.028-12,3%-14,3%1,6%1,7%
1926Foton215.78629.4980,1%0,3%1,6%1,7%
2023JAC214.31920.845-18,2%-37,1%1,5%1,2%
2117Trumpchi212.02223.209-31,8%-43,8%1,5%1,3%
2219Baic192.70519.463-29,4%39,9%1,4%1,1%
2322BYD188.82415.377-21,6%-44,2%1,4%0,9%
2424Kia171.52020.903-10,6%9,3%1,2%1,2%
2520Ford156.92626.530-46,3%-8,8%1,1%1,5%
2628MG141.07020.5773,5%9,8%1,0%1,2%
2725Skoda137.71220.500-28,9%-19,8%1,0%1,1%
2829Cadillac133.11312.4301,7%-13,1%1,0%0,7%
2927Mazda119.85718.459-29,1%1,6%0,9%1,0%
3031JMC109.3779.236-8,6%-20,1%0,8%0,5%
3133Isuzu106.8664.300-0,2%0,0%0,8%0,2%
3234Lexus104.87012.41527,6%0,0%0,8%0,7%
3335Jinbei90.15814.8256,0%1,0%0,7%0,8%
3432Lifan87.5689.411-22,8%-15,6%0,6%0,5%
3536Mitsubishi83.60511.788-5,1%12,6%0,6%0,7%
3642Volvo83.34613.71415,5%46,8%0,6%0,8%
3730Zotye82.5488.709-48,0%-35,2%0,6%0,5%
3837Great Wall81.6799.165-2,9%-8,0%0,6%0,5%
3947Maxus77.67710.16112,7%41,3%0,6%0,6%
4048CNHTC64.5758.7300,0%0,0%0,5%0,5%
4144Lynk & Co64.4958.61816,2%-6,9%0,5%0,5%
4243Venucia64.0068.145-20,8%49,2%0,5%0,5%
4366Jetour62.5228.1950,5%0,5%
4439WEY54.1307.246-36,1%2,3%0,4%0,4%
4553Porsche51.5607.20638,8%0,0%0,4%0,4%
4641Jeep50.7886.120-40,4%-36,3%0,4%0,3%
4749Land Rover44.3218.339-35,1%9,6%0,3%0,5%
4838FAW42.1106.236-57,6%-25,5%0,3%0,3%
4940Peugeot41.0126.134-56,9%-5,8%0,3%0,3%
5045Hawtai35.333793-17,6%-91,9%0,3%0,0%
5173Hongqi34.1484.554466,0%50,3%0,2%0,3%
5246Citroen34.0015.114-57,5%-23,6%0,2%0,3%
5350Leopaard32.7151.538-46,6%-72,9%0,2%0,1%
5477Traum32.6862.536239,0%58,4%0,2%0,1%
5557Lincoln29.4415.110-2,8%0,0%0,2%0,3%
5663ZX Auto29.2835.7500,0%0,0%0,2%0,3%
57102Ora iQ29.0842.0710,2%0,1%
5859SWM27.9253.60819,7%-23,4%0,2%0,2%
5984Bestune27.6582.2030,2%0,1%
6070Borgward26.3335.14738,6%88,7%0,2%0,3%
6154Hanteng24.5821.670-32,2%-60,4%0,2%0,1%
6264Infiniti23.1313.598-1,1%12,9%0,2%0,2%
6380Tesla21.9581.156106,3%0,0%0,2%0,1%
6472Mini19.8072.50929,2%0,0%0,1%0,1%
6558Change19.6651.666-39,1%-40,9%0,1%0,1%
6665Jaguar18.7012.469-31,2%-24,3%0,1%0,1%
6751Soueast17.7202.920-69,1%-23,7%0,1%0,2%
6869Huanghai17.6361.4880,0%0,0%0,1%0,1%
6952Brilliance16.8861.768-71,0%-64,9%0,1%0,1%
7075Subaru14.7452.1448,0%0,0%0,1%0,1%
7167BAW13.9471.944-46,4%-45,9%0,1%0,1%
7271Jiangxi13.7372.3000,0%0,0%0,1%0,1%
7361Suzuki12.9631.505-63,7%-37,9%0,1%0,1%
7468Yema12.2541.708-31,2%-14,9%0,1%0,1%
7560Renault11.1761.487-72,2%-40,1%0,1%0,1%
76120Xpeng11.1111.5150,1%0,1%
7776Cowin10.5652.06814,4%0,8%0,1%0,1%
7890Dorcen9.4310,1%0,0%
7979Landwind9.3631.288-43,5%445,8%0,1%0,1%
8093COS9.3431.532812,4%62,3%0,1%0,1%
8192Acura9.0341.909105,3%182,8%0,1%0,1%
8298Alfa Romeo8.530388216,4%0,0%0,1%0,0%
8356Qoros8.236814-77,5%-86,7%0,1%0,0%
8462Karry8.123436-73,2%-84,4%0,1%0,0%
8582Zhengzhou7.5561.5000,0%0,0%0,1%0,1%
8678Smart7.4601.955-35,5%0,0%0,1%0,1%
8791Nio7.2594360,1%0,0%
8885Maserati6.066923-0,1%0,0%0,0%0,1%
8988Fengguang5.309
9055Haima4.950211-88,6%-95,0%
9189Iveco4.2535900,0%0,0%
9274Bisu3.994425-81,0%-72,7%
9396Changhe3.756108-2,3%-64,0%
9483Weichai3.755428-42,6%-46,6%
9586FQT2.924200-4,7%-9,1%
96108Lark2.585312
9799Beiqi2.5585000,0%0,0%
9881Zhi Dou2.09590-84,0%-73,9%
99105Denza2.089169,9%-100,0%
10094Yudo1.563180-41,1%-44,1%
101103Bentley1.358211-16,0%0,0%
10287Luxgen1.236369-84,2%467,7%
103104Wichai1.180137-27,1%-24,7%
104101DS1.018121-53,7%-30,1%
105111Huasong674
106112Rolls-Royce6388345,0%0,0%
107110Dodge57246-16,6%0,0%
108117Ferrari5441487,6%0,0%
109123Lamborghini53641748,3%0,0%
110109Horki37560102,7%328,6%
111113Chrysler37370-7,2%0,0%
112118Aston Martin323304,2%0,0%
113106SsangYong24563-79,3%-1,6%
114121McLaren1892651,2%0,0%
115119Ram13258-64,0%0,0%
116124Lotus1108214,3%0,0%
117122GMC10718-17,1%0,0%
118121Fiat231-78,9%0,0%
119126Alpina162-30,4%0,0%

Rank 2019Rank 2018GroupSales YTD July 2019Sales July 2019'+/- YTD 2019'+/- Jul 2019Share YTD July 2019Share July 2019
11Volkswagen Group2.217.212319.095-7,4%0,3%16,0%17,8%
22General Motors1.797.558218.273-20,3%-17,3%13,0%12,2%
34Toyota Group960.175134.80412,0%-1,2%6,9%7,5%
46Honda Motor879.505121.91614,9%16,0%6,3%6,8%
53Geely Group836.710106.043-13,3%-17,5%6,0%5,9%
65Renault Nissan Alliance774.999103.445-3,2%11,4%5,6%5,8%
78Changan631.27971.147-14,1%-3,2%4,5%4,0%
87Hyundai-Kia495.60569.178-21,2%23,7%3,6%3,9%
99Great Wall478.97452.2057,1%17,6%3,5%2,9%
1012SAIC Motor455.05463.809-5,0%9,5%3,3%3,6%

Rank 2019Rank 2018ModelSales YTD July 2019Sales July 2019'+/- YTD 2019'+/-July 2019
11Volkswagen Lavida287.17336.9213,5%2,4%
22Nissan Sylphy237.22624.999-3,3%-27,8%
34Haval H6205.59223.079-16,0%-11,4%
45Toyota Corolla203.86426.049-10,4%-26,4%
53Wuling Hongguang194.14414.736-25,1%-22,1%
612Buick Excelle GT167.10814.98929,4%5,7%
717Volkswagen Bora162.89226.7047,7%47,5%
811Volkswagen Santana140.10825.362-9,2%226,7%
920Honda Civic139.13725.22919,3%28,7%
108Volkswagen Sagitar137.29822.240-24,2%-9,6%
119Volkswagen Tiguan130.71113.225-25,8%-49,0%
1226Honda Accord130.36018.39254,3%38,2%
1313Geely Boyue124.72015.006-21,3%-22,7%
1416Geely Emgrand EC7124.17715.006-16,1%-25,0%
1521Nissan X-Trail119.09115.60011,8%75,9%
1623Toyota Levin114.97722.81110,5%30,1%
1743Honda CR-V114.34322.132104,8%225,3%
18115Roewe Ei5105.4378.728729,8%197,0%
1925Volkswagen Passat104.77013.370-4,6%-38,1%
2032Toyota Camry101.60916.2139,9%4,9%
217Volkswagen Jetta100.5462.321-40,8%-91,6%
2245Mercedes E Class97.78812.72723,0%360,8%
2334BMW 5 Series97.47315.97610,6%11,6%
2431Mercedes C Class96.57013.623-3,3%2,7%
2527Nissan Qashqai94.56314.3981,9%36,3%
2629Audi A494.44913.0402,7%8,4%
2718Volkswagen Magotan93.04714.326-34,4%-7,6%
2855Honda Fit88.7025.18034,2%-59,1%
296Baojun 51088.59610.012-62,6%-41,1%
3062Honda Crider83.33512.01033,8%52,4%

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