The world’s largest automotive market appears to be losing its faith in vehicles with smaller engine displacements if recent results are anything to go by.
During July, the market share of new vehicles sold in the country with engine displacements of 1.6litres or less dropped below last year’s average for the fifth month in succession.
In fact, there were 1.24million vehicles sold during the month, a 14.4 per cent increase compared to the previous year according to the China Association of Auto Manufacturers. However, the figures were down 11.9 per cent from June and sales growth from January to July slowed to 42.65 per cent from 47.67 per cent.
Sales of small cars accounted for 65.38 per cent of the overall vehicle passenger sales, totalling 946,200 units over the month. However, this represented a decline of 1.42 per cent and dropped below last year’s average of 69.5 per cent. Similarly, the market for China developed cars, most of which fit into the small car category, also saw a decrease. Indeed 377,700 self developed passenger vehicles were sold during the month, falling 4.5 per cent compared to June.
According to the China Association of Auto Manufacturers’ executive vice chairman and secretary general Dong Yang, the impact of the green car subsidy programme hasn’t so far had an effect. It provides 3,000yuan per unit to 71 fuel efficient models with engines of 1.6litres or less – more incentives are planned.
