China’s auto market finally ushers in a turning point

The Chinese Light Vehicle sales pace slowed slightly in July. Light Vehicle wholesales came to 2.37 million units with growth of -3% year-on-year. At a component level, total Personal Vehicle wholesale volume reached 2.14 million units, down by 3% year-on-year in the month. At the same time, the Light Commercial Vehicle segment continued to grow, increasing by 5% year-on-year to a total of 231k units. On a month-on-month basis, July Personal Vehicle sales decreased by 7%, while Light Commercial Vehicle sales decreased by 13%. Since the beginning of this year, cumulative Light Vehicle wholesales have reached 15.39 million units, an increase of 7%. At a glance, July sales declined both from a year-on-year and month-on-month perspective. But considering last year’s abnormally strong post-lockdown sales in July 2022 (hence a high base), the fact that June’s sales broke the record high in 2023 and combining this with seasonal factor considerations, July’s sales remained surprisingly robust. The July selling rate reached 35.9 million units/year, the second-highest rate on record.