Sales of locally-made passenger cars in China slipped 2 percent in February 2002 against the year ago level, to stand at 49,174 units compared to the same month in 2001. But the decline was attributable largely to 10 missed selling days in the middle of the month when consumers spent time at home celebrating the Chinese New Year according to Automotive Resources Asia (ARA).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
ARA report that through the first two months of the year, Chinese car sales were up twenty-five percent compared to 2001 — despite the February fall off.
ARA says that this year’s growth has been led by the small car segment, which features cars priced under $12,000. This segment, led by two Japanese cars (Suzuki Alto and Tianjin Charade), a Chinese-badged car (Geely) and the Kia Pride from Korea, saw sales grow 95 percent in the first two months of the year.
“Price cuts and new offerings are spurring enthusiasm for small cars this year,” says Yale Zhang, Associate, Automotive Resources.
While the small car segment surges, ARA says that there has been a softening in demand for more expensive cars and mounting evidence of diminishing market share for older models. The Santana, Santana 2000, Jetta and Citroen — perennial market leaders — all saw sales decline in an expanding market. For Jetta and Citroen this is the first period of decline in seven years.
