Auto sales in the world’s biggest car market, China, surged to a record of 24.6 million units in 2015, but at a much reduced growth rate, as demand declined because of economic uncertainty.
Industry data released on Tuesday, Jan. 12, indicated that growth rate in 2015 was 4.7 percent, which was a three-year low mainly because of waning economic growth and volatile stock markets, China Daily reported.
Other factors associated with the lower growth included the restrictions imposed by local governments on license plate issue for newly bought vehicles and the transfer of used cars to other cities, reduced overseas demand for Chinese exports, and the closing of the 3,000-yuan subsidy for energy-saving vehicles.
Sales for passenger vehicles increased by 7.3 percent each year to 21.1 million in 2015, whereas that of commercial cars decreased by 10 percent. Furthermore, demand for trucks declined by 11.4 percent, based on a report released by the China Association of Automobile Manufacturers.
Growth in the sales of passenger cars waned progressively during the first eight months and even flattened in Aug. 2015. Tax incentives, on the contrary, introduced for purchase of smaller-engine vehicles in Sept. 2015 helped boost the moribund sales.
"Sales of 1.6-liter and lesser category passenger vehicles surged in the fourth quarter," said Dong Yang, executive vice president of CAAM, adding: "This demonstrates the continued strong demand for passenger cars. We expect the momentum to continue, as long as fresh policies do not crimp growth."
Sports utility vehicles remained the mainstay of the industry and accounted for 25.2 percent of the total sales in 2015. For instance, SUV sales topped with 6.2 million units, a 52.4-percent growth as compared to 2014. Multiple purpose vehicle sales increased by 10 percent, but sales of sedans, vans and hatchbacks dropped.
With regard to foreign brands, Mercedes-Benz was among those that clocked excellent sales in the premium segment. This was attributed to the 14 domestically manufactured and imported models, including GLC, GLE SUVs and GLA. The brand sold 363,000 units and grew 35 percent.
According to the general manager of GAC Motor Co, Wu Song, the overall market slowdown would provide more opportunities for local carmakers.