With government policies, tax exemptions and attractive deals, the Chinese passenger car sales has steadily increased over the last two months
Over the last couple of months, the Auto sales in China have steadily gone up as it registered a growth of 14.5 per cent in May with nearly 2.12 million units. The health crisis emerged in China took the world by storm since the beginning of this calendar year as the global economy stumbled to new lows and an immediate recovery has never been on the cards.
Despite being the country where it all started, China has made amends within its own country as the social and economic activities got back to normal in a short period of time. Thus, the automotive industry saw a growth of 4.4 per cent in April 2020 and further improvements were made the following month, the first increase since the middle of 2018.
In May 2020, the Chinese auto industry made substantial recovery as the government played a key role in helping the revival phase according to the China Association of Automobile Manufacturers. The passenger vehicle sales accounting for more than three-quarters of the total volume, increased to 7 per cent with cumulative sales of 1.674 million units (36,000 Cars sold in India in May 2019) .
Meanwhile, on the commercial vehicle side, China experienced an increase of 48 per cent with 5,20,000 units. The passenger vehicle volume sales is expected to further grow in the coming months with attractive policies across Chinese cities. The exemptions offered by governments, carmakers and dealerships have come in handy to increase vehicle sales.
BYD Auto offered rebates of up to 5,000 yuan last month while BMW sold its cars with low interest rates and trade-in rebates. The Chinese are looking at the private mode of transport in light of the social distancing measures. However, New Energy Vehicles with EVs, Plug-in hybrids and FCEVs saw a decline of up to 23.5 per cent as the sales stood at 82,000 units.
The extension of incentives on NEVs costing below 300,000 yuan has helped increase the sales of Tesla’s locally-made Model 3 to just over 11,000 units – a three-fold increase compared to the previous month. VW Group has announced a new electrification strategy as it will spend one billion euros and raise stakes in JAV Volkswagen to 75 per cent.
An investment of 1.1 billion euros is being made to increase the stake in a battery producer called Gotion as well.