Vehicles sales in China in August rose 8.3% from a year earlier, according to the China Association of Automobile Manufacturers (CAAM).
A total of 1.49m vehicles were sold in China last month, CAAM said. Sales in the first eight months totalled 12.47m, up 4.1% from a year earlier.
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Passenger vehicle sales in the month rose 11.3% to 1.22m, with sales in the first eight months up 8% to 9.95m.
Sources in China suggest that discounting activity by dealerships has increased this year as inventory has grown amid softer demand. Chinese domestic brands appear to be worst affected by slowing demand with foreign brands continuing to report relatively strong sales (Volkswagen, for example, staying upbeat).
However, Japanese brands are being adversely impacted by rising anti-Japanese sentiment in China that has emerged in the wake of a diplomatic dispute over disputed islands in the East China Sea.
Reuters reported that Dong Yang, secretary general of the CAAM, told a news conference that Japanese car sales had slowed in August due to the dispute.
Nissan’s Chief Operating Officer Toshiyuki Shiga said recently that the diplomatic row was having ‘some impact’ on sales of Japanese car manufacturers as they were having difficulty in holding big, outdoor sales promotion campaigns, Reuters reported.
Toyota reported a hefty 15% China sales fall from its JVs in August.
