Market forecasters at LMC Automotive are projecting that the Chinese light vehicle market will grow by 10% to top 21m units in 2013.

In its latest projections, LMC notes that sales of vehicles in the first two months continued to gain momentum, extending a rebounding trend which began in the fourth quarter of last year. Year-to-date light vehicle sales rose by 17% on last year to 3.43m units.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In a research note, LMC said that the further acceleration in light vehicle sales was ‘underpinned by recovering economic growth and thus improving consumer sentiment’. LMC also said that dealer inventory is low, providing room for wholesale acceleration at the beginning of the year. 

LMC expects a ‘normalising’ Q2 to follow the robust Q1 sales.

Manufacturer detail shows that the first two months of the year were especially strong for the top three brands: Volkswagen (+41%), Wuling (+26%) and Hyundai (+43%). Toyota and Nissan sales were dented by the effects of anti-Japanese sentiment with passenger vehicle sales in the first two months down by 17% and 30% respectively.

LMC analyst John Zeng also drew attention in his research note to the slow progress of so-called ‘new energy vehicles’ in the Chinese market. Despite high hopes arising from government subsidies for the purchase of electric vehicles, Zeng notes that cities across China have launched their own new energy development plans that amount to ‘local protectionism’ favouring locally made vehicles.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“If central financial subsidies continue to be used alongside local protection subsidies, a major side effect will be fragmentation of the new energy vehicle market, while the commercial prospects of NEV will become further and further away,” said Zeng.