China car sales rebound accelerated in August as coronavirus pressures eased

Name: Tesla starts delivery of made-in-China cars
Uploaded: 2020-09-08T10:17:46.000Z
Duration: 1 min 20 s
Description: Tesla starts delivery of made-in-China cars

Sales of sedans, SUVs, minivans and multipurpose vehicles increased 8.8 per cent last month from a year earlier to 1.73 million units, the China Passenger Car Association

Toyota reported a 27 per cent increase in China sales for August, while sales of electric cars increased 45 per cent to 82,500 units last month

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Global carmakers have spent billions of US dollars expanding in China in recent decades and manufacturers including Volkswagen, Daimler, BMW and Toyota remain focused on tapping the market’s long-term growth potential. Photo: AP

Bloomberg

Published: 6:17pm, 8 Sep 2020Updated: 6:17pm, 8 Sep 2020

China’s car sales increased for a second straight month in August, raising optimism that a two-year slump in the world’s biggest market is nearing an end.

Retail sales of sedans, SUVs, minivans and multipurpose vehicles increased 8.8 per cent last month from a year earlier to 1.73 million units, the China Passenger Car Association said on Tuesday. That followed a 7.9 per cent gain in July.

Showrooms and shopping centres have reopened as the coronavirus pandemic eases in China, a boon for everyone from market leader Volkswagen to electric-car manufacturers Tesla and BYD. But challenges remain, with the country’s economy still recuperating and trade tensions and stricter environmental standards weighing on demand.

Japanese and German brands are set to benefit from some customers trading up as the economy gradually improves, according to Bloomberg Intelligence. Toyota reported a 27 per cent increase in China sales for August, while sales by Volkswagen rose 4.7 per cent in July. SAIC, the biggest Chinese carmaker, posted a 3.6 per cent gain for last month.

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Tesla starts delivery of made-in-China cars

Global carmakers have spent billions of US dollars expanding in China in recent decades and manufacturers including Volkswagen, Daimler, BMW and Toyota remain focused on tapping the market’s long-term growth potential. The government also has added stimulus measures such as tax rebates to help revitalise the industry.

Sales of electric cars increased 45 per cent to 82,500 units last month, the China Passenger Car Association said. Tesla sold 11,800 cars, ranking third in new-energy vehicles, behind SAIC and BYD.

Tesla started deliveries from its massive new Shanghai factory around the start of 2020 and has been boosting monthly registrations since. The company is facing intensifying competition from the likes of Nio, a local rival that has benefited from fresh funding this year.