China Auto Sales Rebound In June

Sales of passenger vehicles in China during the first half of 2011 rose 5.3 percent year-on-year to 6.64 million units, lower than the general market expectation, reports, citing the China Passenger Car Association (CPCA).

China Auto Sales Rebound In June

The growth rate of passenger vehicle sales in June was above expectations, rising 1.5 percent from May to 1.02 million units, reversing month-on-month drops recorded in the preceding two months.

According to market insiders, China’s automobile market has bottomed and is starting to rebound.

However, Rao Da, secretary-general of the China Passenger Car Association, said passenger vehicle sales figures in July will be lower compared to the figure in June.

The passenger vehicle market may still register negative growth for full year 2011, added Rao.

According to data by the CPCA, the one-day public holiday due to the Dragon Boat Festival led to a 26 percent week-on-week increase in passenger vehicle sales in the second week of June. Compared with the second week of May, sales rose seven percent.

Passenger vehicle sales rose two percent week-on-week and one percent month-on-month in the third week of June.

Sales picked up further in the fourth week, with sales up 15 percent week-on-week.

Rao predicts that automakers sold a total of 960,000 units in June, an increase of 12 percent year-on-year, as production by Japanese auto companies beat expectations.

Toyota recorded a 2.4 percent year-on-year drop in sales in China in June, significantly lower than the 35 percent drop in sales in May. Compared with the previous month, sales rose 64.8 percent.

DongFeng Automobile (600006) completed 51.9 percent of its 2011 sales target by selling a total of 1.51 million cars during the first six months, an increase of 12.48 percent.

Sales of SAIC Motor (600104) exceeded two million units during the same period, an increase of 12.89 percent year-on-year, enabling the company to maintain its top ranking in the domestic market.

General Motor and its joint ventures in China recorded sales volume of 1.27 million units during the same period.

Shares of SAIC Motor fell 1.83 percent to trade at 18.22 yuan at 13:10 today.

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