This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.

Please create a password or click to receive a login link.

Please enter your password or get a login link if you’ve forgotten

Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

China Car Recovery Gathers Pace With July Sales Acceler...

Business Maverick

Business Maverick

China Car Recovery Gathers Pace With July Sales Accelerating

A General Motors Co. Buick dealership stands in Shanghai, China, Thursday, July 18, 2019. The future for GM in China is in the hands of customers considering whether to go electric. No other country comes close to China, in terms of scale and adoption of new-energy vehicles, where more electric cars have been sold in Shanghai alone than in all of the U.S., U.K., or Germany. Photographer: Gilles Sabrie/Bloomberg
By Bloomberg
11 Aug 2020 0

A recovery in China car sales accelerated last month, signalling the world’s biggest auto market continues to return to health following a two-year slump and a blip in June.

Chinese retail sales of sedans, SUVs, minivans and multipurpose vehicles expanded 7.9% in July from a year earlier to 1.63 million units, the China Passenger Car Association said Tuesday. The sales trend had been improving over several months before a 6.5% drop in June.
Back in Business

The car industry is betting that the reopening of showrooms and malls as the coronavirus pandemic eases in China will lead to a sustained increase in demand. The outbreak exacerbated a slump brought about by a slowing economy, trade tensions with the U.S. and stricter environmental standards.

Yet challenges remain: the economy is still recuperating, and new technologies such as electrified motors may be prompting some buyers to put off purchase decisions. China’s gross domestic product expanded 3.2% in the three months to June from a year earlier, following a 6.8% decline in the first quarter.

Car wholesales rose 8.5% from July last year to 1.67 million units, the China Association of Automobile Manufacturers said separately. Xu Haidong, a CAAM assistant secretary general, cautioned in an online briefing that there was an “obvious increase” in inventories last month, suggesting sell-through to consumers hasn’t been as strong as sales from manufacturers to dealerships.

Yet investors have been encouraged by the uptick in sales. Shares of China market leader Volkswagen AG have risen more than 40% from a mid-March low, while challenger General Motors Co. is up more than 60% over that span. Local contender Geely Automobile Holdings Ltd. and peer Brilliance China Automotive Holdings Ltd., a partner of BMW AG, have added more than 50%.

Premium marques such as BMW and Mercedes-Benz have thus far emerged from the slump quicker, helped by demand from wealthier consumers, while cheaper local brands are recovering at a slower pace.

Wholesales of new-energy vehicles, including electric cars, advanced for the first time this year, rising 19% in July from a year earlier to 98,000 units, CAAM said.

Tesla Inc., which started deliveries from its massive new Shanghai factory around the start of 2020, has quickly grabbed market leadership and been a rare example of an electric-car maker boosting monthly registrations this year. Tesla sold 11,014 autos last month in China and kept its top spot in battery-powered cars, PCA said.

Costly Electric Vehicles Confront a Harsh Coronavirus Reality

After growing rapidly for several years, electric-car sales lost momentum as the government moved to limit subsidies in mid-2019. The pandemic also hurt demand, while falling oil prices made gas guzzlers more competitive. China still sees electric cars as a long-term priority, and has added new stimulus measures to help the industry recover.

Sales of NEVs are set to reach 1.1 million units this year in the country, with Tesla accounting for about 100,000 of that, CAAM forecast. That compares with NEV wholesales of 1.21 million units in 2019, according to data from CAAM.


Please peer review 3 community comments before your comment can be posted