Running out of fuel: China’s car sales grow 4.7pc– weakest since 2012
Economic uncertainty and falling stock market pushed mainlanders to delay new purchases,but demand for ‘green’ vehicles more than tripled, industry association says
Car sales in the mainland China grew at their slowest pace in three years as the weaker economy and stock market woes dented demand in the world’s largest auto market, although “green” vehicles saw a sharp uptick, the nation’s industry group says.
Deliveries of passenger and commercial vehicles for last year increased by 4.7 per cent, to 24.6 million units, over the previous year. The figure is a record but represented the smallest annual growth since 2012, the state-backed China Association of Automobile Manufacturers said on Tuesday.
By comparison, the United States, which is the second largest car market, saw sales rise 5.7 per cent, to 17.5 million, over the 12 months before, according to research company Autodata.
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Mainlanders delayed vehicle purchases in 2014 as they weathered out economic instability and a falling stock market, the association said. Sales recovered somewhat in the fourth quarter, climbing 9.4 per cent, to 7.5 million units, after a tax cut on cars with smaller engines in September.
The association cut its sales projection to 3 per cent in July, down from an earlier estimate of 7 per cent.
One bright spot for the industry was demand for new energy vehicles (NEV), which saw sales jump by 3.4-fold, to 331,092 units, on the back of strong government endorsement.
Most big cities on the mainland restrict the number of new car registrations in a bid to limit traffic congestion and exhaust emissions. But some municipal governments exempt green vehicles from the rule.