China January. Auto Market dropped 16%

Chinese Auto Market

Chinese Auto Market signed the third consecutive double-digit drop in January with 2.332.165 sales (-16.3%). Volkswagen – the leader – kept declining while Toyota soared to 20.3%, helped by the Levin and the Camry. Impressive performance scored by BMW, up 25%.

Economic Environment

Chinese economy seems to have continued to cool. The manufacturing PMI improved marginally in January although still hovered in negative territory, while export growth surpassed expectations in the same month. That said, analysts warn that January’s surge mostly reflect distortions related to the Lunar New Year (LNY) holidays.

The Ministry of Commerce revealed on 10 February that growth in consumer spending moderated over the LNY festivity, signaling that household spending will be sluggish in Q1. In an attempt to revive consumers’ mood, on 29 January, the government announced subsidies on purchases of cars and appliances. Meanwhile, trade talks between China and the U.S. intensified in recent weeks as the 2 March deadline looms.

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.

MarketSales 2014Sales 2015Sales 2016Sales 2017Sales 2018'+/- 2018
Car+LCV23.561.89024.983.32927.977.21728.635.73627.589.987-3,7%

In January the market has declined for the 7th month in a row, signing the third consecutive double-digit drop, with sales at 2.332.165 (-16.3%).

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 market leader in January was Volkswagen, marking the sixth decline in seven months, selling 281.121 units (-19.9%) and holding 12.1% of market share.

In second place, Toyota has soared to 20.3% with actual figures at 170.368 units, signing the best performance in the Top 10.

In third place Geely with 142.932 (-1.1%) few units ahead of Honda with 138.822 (+0.4%).

In fifth place Nissan with 105.222 units (+6.1%) followed by Buick with 93.196 (-4.7%), Changan 91.474 (-33.1%), Wuling with 88.136 (-16.1%), Haval with 86.152 (+9.8%) and in 10th place by Mercedes with 79.299 (+1%).

At model-wise, the Volkswagen Lavida has consolidated the leadership with 59.507 sales (+21.3%) ahead of the Haval H6 with 45.034 (-23.8%) and the Nissan Sylphy with 44.956 (+17.8%).

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

Rank 2019Rank 2018BrandsSales January 2019Sales January '18Jan '+/-Share January
11Volkswagen281.121350.853-19,9%12,1%
23Toyota170.368141.67520,3%7,3%
32Geely142.932144.546-1,1%6,1%
44Honda138.822138.3060,4%6,0%
59Nissan105.22299.2136,1%4,5%
610Buick93.19697.792-4,7%4,0%
75Changan91.474136.764-33,1%3,9%
87Wuling88.136105.072-16,1%3,8%
912Haval86.15278.4599,8%3,7%
1011Mercedes79.29978.5051,0%3,4%
1117BMW72.43257.64225,7%3,1%
126Baojun71.367108.585-34,3%3,1%
138Dongfeng61.54299.562-38,2%2,6%
1414Chevrolet60.67265.436-7,3%2,6%
1513Audi57.09275.299-24,2%2,4%
1622BYD43.25741.6034,0%1,9%
1719Roewe41.33649.051-15,7%1,8%
1826Chery37.59829.76626,3%1,6%
1921JAC32.56943.447-25,0%1,4%
2015Trumpchi30.30961.321-50,6%1,3%
2125Kia29.71030.393-2,2%1,3%
2227Foton27.22327.485-1,0%1,2%
2328Cadillac26.80326.0223,0%1,1%
2431Lifan25.20624.5222,8%1,1%
2524Skoda23.00035.009-34,3%1,0%
2618Ford20.86655.627-62,5%0,9%
2716Hyundai20.79657.970-64,1%0,9%
2832MG20.27123.987-15,5%0,9%
2923Mazda19.43235.407-45,1%0,8%
3020Baic17.36245.198-61,6%0,7%
3141Lexus14.24814.2480,0%0,6%
3243Great Wall13.27713.369-0,7%0,6%
3345Jinbei12.70211.6299,2%0,5%
34Lynk & Co12.5880,5%
3538Mitsubishi12.41116.542-25,0%0,5%
3647JMC12.26111.2179,3%0,5%
3735Venucia12.15019.681-38,3%0,5%
3846Leopaard11.08711.220-1,2%0,5%
3944Volvo10.98812.251-10,3%0,5%
4040Jeep10.28914.381-28,5%0,4%
4134WEY10.16720.289-49,9%0,4%
42Jetour10.0580,4%
4329Zotye10.02024.832-59,6%0,4%
4442Land Rover9.71113.545-28,3%0,4%
4550CNHTC9.1659.1650,0%0,4%
4680Hawtai8.6851.326555,0%0,4%
4749Maxus8.36410.489-20,3%0,4%
48Bestune7.6860,3%
4966SWM6.8302.612161,5%0,3%
5053Porsche6.7616.7620,0%0,3%
5136Peugeot6.52419.389-66,4%0,3%
5239Citroen5.78315.860-63,5%0,2%
5356Lincoln5.2775.2770,0%0,2%
5454Hanteng5.0186.529-23,1%0,2%
5578Traum5.0131.519230,0%0,2%
56Hongqi4.6510,2%
5764Borgward4.6302.77566,8%0,2%
5833Isuzu3.90020.413-80,9%0,2%
5965Infiniti3.4102.68926,8%0,1%
6037Soueast3.24118.034-82,0%0,1%
6151Renault3.1369.106-65,6%0,1%
6263ZX Auto2.9482.9480,0%0,1%
6358Jaguar2.8084.849-42,1%0,1%
64Fengguang2.7770,1%
6530FAW2.70524.568-89,0%0,1%
6652Brilliance2.6687.441-64,1%0,1%
6767Huanghai2.4982.4980,0%0,1%
6869Subaru2.4492.4490,0%0,1%
6968Change2.2402.475-9,5%0,1%
70Dorcen2.2070,1%
7170Jiangxi2.1442.1440,0%0,1%
7272Landwind2.0392.0002,0%0,1%
73Ora iQ2.0360,1%
74COS2.0250,1%
7555Suzuki1.8896.507-71,0%0,1%
76Nio1.8030,1%
7773Smart1.7751.7750,0%0,1%
7871Cowin1.5842.020-21,6%0,1%
7974Mini1.5691.5690,0%0,1%
8076Shandong Kiama1.5511.5510,0%0,1%
8159Yema1.4774.350-66,0%0,1%
8279Maserati1.3971.3970,0%0,1%
8361BAW1.3104.090-68,0%0,1%
8481Zhengzhou1.1561.1560,0%
8582Acura1.15572160,2%
8675Weichai8581.562-45,1%
8762Bisu8453.834-78,0%
8883Iveco7137130,0%
8957Karry7045.044-86,0%
9048Haima67610.534-93,6%
91Xpeng599
9260Qoros4824.232-88,6%
9384Alfa Romeo4694690,0%
94Lark415
9586Yudo344356-3,4%
9688DS3033030,0%
9790Bentley2842840,0%
9887Wichai273354-22,9%
9992Dodge1901900,0%
100Changhe168

Rank 2019Rank 2018GroupSales January 2019Sales January '18Jan '+/-Share January
11Volkswagen Group368.262468.211-21,3%15,8%
22General Motors340.205402.938-15,6%14,6%
34Toyota Group184.616155.92318,4%7,9%
43Geely Group166.511156.8006,2%7,2%
55Honda Motor139.977139.0270,7%6,0%
67Renault Nissan Alliance124.179127.550-2,6%5,3%
79Great Wall98.35598.748-0,4%4,2%
86Changan93.914136.764-31,3%4,0%
912Mercedes Daimler81.07480.2801,0%3,5%
1016BMW74.08959.29924,9%3,2%

Rank 2019Rank 2018ModelsSales Jan 2019Sales Jan 2018Jan 19 +/-Share Jan 2019
14Volkswagen Lavida59.50749.03921,3%2,6%
22Haval H645.03459.133-23,8%1,9%
37Nissan Sylphy44.95638.17917,8%1,9%
43Wuling Hongguang38.20355.138-30,7%1,6%
55Toyota Corolla37.71146.735-19,3%1,6%
653Buick Excelle GT34.62215.000130,8%1,5%
76Volkswagen Jetta31.06539.651-21,7%1,3%
88Volkswagen Santana28.84035.550-18,9%1,2%
921Chevrolet Cavalier28.29722.70224,6%1,2%
1012Geely Boyue27.50330.381-9,5%1,2%
1157Toyota Levin26.68114.05389,9%1,1%
1217Wuling Mini Truck25.29825.2980,0%1,1%
1311Volkswagen Bora24.76532.585-24,0%1,1%
1444Honda Civic24.37416.45948,1%1,0%
1516Geely Emgrand EC724.07226.122-7,8%1,0%
16Roewe Ei522.2611,0%
1735Honda Accord21.33618.39016,0%0,9%
181Baojun 51020.91159.306-64,7%0,9%
1928Foton Light Truck20.32520.3250,0%0,9%
2065Toyota Camry19.72011.57770,3%0,8%
2122Changan CS3519.60021.553-9,1%0,8%
2239Toyota RAV417.85917.2383,6%0,8%
2338Jac Light Truck17.72617.7260,0%0,8%
2440Honda CR-V17.57117.0932,8%0,8%
2568BMW 3 Series17.38011.36652,9%0,7%
2643Nissan Qashqai16.62616.5190,6%0,7%
279Volkswagen Sagitar16.58734.874-52,4%0,7%
2825Changan CS7516.51921.162-21,9%0,7%
2931Volkswagen Passat16.49519.831-16,8%0,7%
3027Audi A416.31820.802-21,6%0,7%

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