China car sales rose for first time in almost a year in May, industry body says
- Retail sales of cars, SUVs and multiple-purpose vehicles increased 1.9 per cent from a year earlier to 1.64 million units in May, the China Passenger Car Association said
- This represented the first gain since June 2019 as government stimulus measures and generous discounts aided the recovery from the coronavirus outbreak
Car sales in China rose for the first time in almost a year last month, evidence that the world’s largest market is rebounding from the coronavirus crisis and the trade war with the United States.
Retail sales of cars, SUVs and multiple-purpose vehicles increased 1.9 per cent from a year earlier to 1.64 million units in May, the China Passenger Car Association said on Monday, which was the first gain since June 2019.
The pandemic exacerbated a sales slump that is in its third year, with an economic slowdown, trade tensions and stricter emission standards weighing on demand.
Global carmakers spent billions of US dollars expanding in China in recent decades, and manufacturers such as Tesla, General Motors and Volkswagen remain undeterred in their effort to tap the market’s long-term growth potential, including for electric vehicles. The German manufacturer said this month it will become the biggest shareholder of battery company Guoxuan High-Tech, and it is seeking a 50 per cent stake in a Chinese electric vehicle partner.