China’s new vehicle market continued to recover in November 2020, with sales rising by 12.6% to 2.77m units from 2.46m units in the same month of last year, based on passenger car and commercial vehicle wholesale data released by the China Association of Automobile Manufacturers (CAAM).
The Chinese economy has rebounded strongly from the COVID-19 pandemic earlier in the year, helped by huge government stimulus including sharply higher fiscal spending, interest rate cuts and lower reserve requirements for banks. GDP expanded by 4.9% in the third quarter after shrinking by 3.2% in the second quarter, resulting in growth of 0.7% in the first nine months of the year.
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Sales of commercial vehicles surged by 18% year on year to around 472,000 units, driven by government investment in infrastructure and by stricter emission regulations forcing operators to upgrade their vehicles, while sales of passenger vehicles rose by 11.6% to 2.23m units.
The vehicle market has also been lifted in recent months by local government measures to encourage vehicle purchases, including the lifting of restrictions on the issue of new vehicle licence plates in major cities. Sales in the first 11 months of 2020 were down by just 2.9% at 22.47m units from 23.10m units in the same period of last year, after posting sharp declines earlier in the year.
Sales of new energy vehicles (NEVs), mainly comprising electric and plug-in hybrid vehicles, jumped by 105% to 200,000 units – the fourth consecutive monthly rise. Cumulative sales were up by 3.9% at 1,109,000 units.
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