China’s car market grew for the first time in three years

China’s car market grew for the first time in three years

June 25, 2020 0 By autotimesnews

Such dynamics is explained by the emergence of the Chinese economy from the crisis, as well as a number of objective factors.

Experts of the Avtostat analytical agency shared data on sales of new cars in China in May 2020. Last month, the inhabitants of the Middle Kingdom purchased 1 million 674 thousand new cars. This result was 7% higher than in May 2019. The main news was precisely the growth in sales, since before that, the indicators had been constantly falling since July 2017, and the peak of the market decline was recorded in February-March 2020 against the backdrop of the coronavirus epidemic.

There are several objective reasons for the emergence of the Chinese market from the crisis. Firstly, many people put off buying a car during quarantine and did it only in May. Secondly, dealers offer various promotions to attract customers. Thirdly, the Chinese government directly provides citizens with funds for the purchase of a car, as supporting this industry is a key objective. Finally, after the pandemic, many decided to transfer from public transport to private.

If we talk about data from the beginning of the year, then the people of China bought 6 million 109 thousand new cars (-27.4%). According to preliminary forecasts by experts, the fall of the Chinese car market at the end of the year may be from 15% to 25%, which will be the largest decline in recent years.