Sales of passenger vehicles drop by 5.1% in China

The year on year sales of retail passenger vehicles in China saw a drop of 5.1 per cent in the month of June. Reportedly, 1.58 million units were sold in June as per the data released on Thursday by the China Passenger Car Association.

The association’s secretary general Cui Dongshu said that several factors resulted in the sales reduction.

Interestingly, the recovery of autocar sales in Europe and the US in May triggered the shortage of chips globally. And their dearth forced China’s automobile manufacturers to reduce their production significantly. Thus, they incurred more losses than anticipated.

As per Cui, the issue of chip shortage was not obvious for the first few months. However, the decline in wholesale business during May-June caused imbalance in the retail market. It happened due to surging in orders and existing inventory. Besides, the ongoing pandemic also immersed as one of the biggest deterrents that harmed the prospects of trade.

Cases in Guangzhou have affected the business in Southern China.

Interestingly, the first half witnessed a growth of 28.9 percent in the sales of passenger vehicles. It reached 9.94 million. It was a record high since 2011 in the same period.

The new-energy passenger vehicles sales outclassed the expectations. Retail and wholesale markets exceeded by more than a million units each in half yearly. They were up by 218.9 per cent and 231.5 per cent respectively.

Likewise, 223,000 (up by 169.9 per cent yoy) units of new-energy passenger cars were sold during June.

Fill in the form
and join the financial revolution!