Sales of automobiles fell 4.3percent in July. Sales of new energy vehicles showed the first negative growth.

 Sales of automobiles fell 4.3percent in July. Sales of new energy vehicles showed the first negative growth.

For passenger cars, sales in July were 15.228 million, down 3.9% from the same period last year. Among them, the sales of SUV models, which have been declining for several months in succession, increased by 6.4% year on year, while the sales of cars and MVVs have declined. However, sales of Chinese brand SUVs in that month were only 327,000, down 10.6% from a year earlier, and the share of Chinese brands in the SUV market fell below 50%.

Failure in the SUV market led to a further decline in the market share of Chinese brands. In July, the market share of Chinese brand passenger cars was only 36.2%. The market share of Chinese brand passenger cars has been below 40% for four consecutive months.

Among the top 10 Chinese automobile companies in automobile sales, only Great Wall and Huachen automobiles have achieved slight growth, while the other 8 automobile companies have shown varying degrees of decline. Among them, SAIC Group, the largest automobile group in China, and Geely Automobile, the leader of its own brand, dropped more than 600,000 vehicles from 3.988 million in the same period last year to 3.35 million, while Geely decreased from 900,000 vehicles last year to 745,000 vehicles, down 17% from the same period last year.

It is noteworthy that in July this year, Chinas new energy vehicles showed a rare negative growth. In the same month, sales of new energy vehicles were only 80,000, down 4.7% year-on-year.

The decline in sales of new energy vehicles is mainly due to the decline in subsidies. In June, we seized the policy and released part of the market ahead of time, which will be lower in July. The growth in June is relatively large. If we look at the market in these two months on average, it still shows a higher growth. Xu Haidong, Assistant Secretary-General of the China Automobile Association, said in an interview with the 21st Century Economic Reporter.

He believes that the trend of rapid growth of new energy vehicles in China has not been affected by the decline of subsidies. Judging from the trend of the new energy market, it is expected to maintain a high growth rate in the second half of the year. Although the CAAC has adjusted its annual sales target for new energy vehicles from 1.7 million to 1.5 million, even if the target is slightly lowered, the growth rate is still very high.

At the beginning of this year, the China Automobile Association predicted that Chinas automobile sales will show zero growth throughout the year. At the end of July, due to the poor performance of the car market in the first half of the year, CAAC adjusted its market forecast for the whole year. CAAC said that although the overall decline in the industry has narrowed in recent months, the annual sales are still under considerable pressure. It is estimated that the automobile sales in 2019 will be about 26.68 million vehicles, down 5.4% year-on-year. New energy vehicles also fell to 1.5 million from the previous forecast of 1.7 million, an increase of 19.4% over the same period last year.

However, the cumulative decline of automobile sales in the whole year is still as high as 11.4%. It is still difficult to pull back to 5% in the next few months.

The base of the second half of last year was relatively low, and the gap in the market would be closer. Local governments are also responding to policies to promote automobile consumption, which will also play a role in promoting the automobile market. In addition, the transition of five countries and six countries has passed smoothly, and consumerswait-and-see mood is expected to improve. Overall, we think the second half of the year will be better. Xu Haidong told economic reporters in the 21st century.

For the second half of the market trend, Xu Haidong believes that the current trend, August sales may continue to grow negatively, but the gold nine silver ten is expected to reverse.

Source: Liable Editor of 21st Century Economic Report: Liu Song_NBJ9949