China's January auto sales growth rebounds to 10.7 percent


China's auto sales growth rebounded in January into positive territory, boosted by strong demand for SUVs, an industry group reported Friday.

Sales of sedans, SUVs and minivans rose 10.7 percent from a year earlier to 2.4 million, recovering from December's 0.7 percent contraction, the China Association of Automobile Manufacturers said. Total vehicle sales including trucks and buses rose 13.6 percent to 2.7 million.

Sales of SUVs, which make up nearly half of purchases, rose 22.9 percent over January 2017 to just over 1 million.

The industry is coming off lackluster 1.4 percent growth last year as the market paid back a 2016 surge following a sales tax cut that boosted purchases by 15 percent.

Weak demand is a setback for global automakers looking to China to drive revenue at a time when Beijing is pressing the industry to pour resources into developing electric vehicles.

Automakers are forecasting this year's total market growth at 3 to 4 percent, a fraction of earlier double-digit rates. Demand has weakened as economic growth slowed and Beijing and other major cities tightened restrictions on car ownership to curb smog and congestion.

Competition is intensifying as global and Chinese automakers pour billions of dollars into ramping up production of electric vehicles under pressure from Beijing to meet official minimum sales targets that take effect in 2020.

January sales of electric and hybrid vehicles rose 430 percent, though from last year's low base, to 38,470.

"Despite being in a period of policy uncertainty, the trend of sales of new energy vehicles driven by the market still is relatively strong," said the CAAM general secretary, Cui Dongshu, in a statement.

"The development of new energy vehicles still faces many problems," said Cui. "The energy density of batteries increases very slowly, which has led to low range that cannot satisfy customer demand."

Nissan Motor Co. announced plans this week to launch sales of its all-electric Leaf this year with a Chinese partner. It said they will develop 40 new models — half of them pure-electric or gasoline-electric hybrid — through 2020.

Earlier, Ford Motor Co. announced plans in December to roll out at least 15 new electrics in China by 2025. VW announced in November it will spend $11.8 billion by 2025 to develop and manufacture all-electric and plug-in hybrid vehicles for China.

General Motors Co. previously announced plans to start production of a pure-electric vehicle in China and launch 10 electric or gasoline-electric hybrids by 2020.

—GM said January sales rose 14.5 percent from a year earlier to 367,712 vehicles.

—Ford said sales declined 18 percent to 75,990 vehicles.

—Nissan sales rose 13.1 percent to 135,037.

—Toyota Motor Co. sales rose 12.4 percent to 127,500.

___

China Association of Automobile Manufacturers (in Chinese): www.caam.org.cn


Reader Comments ...


Next Up in Nation World

School threat against Northwestern leads to arrest Friday
School threat against Northwestern leads to arrest Friday

A threat against Northwestern schools led to an arrest Friday. Clark County Sheriff’s Office couldn’t immediately provide details of the threat or who was arrested but said they were contacted Friday morning. READ: Springfield student arrested in Facebook threat: 4 things to know “There was another threat and another arrest was made...
Michael B. Jordan responds to criticism about him living with his parents
Michael B. Jordan responds to criticism about him living with his parents

Michael B. Jordan had a quick response for one person on Twitter who criticized his living arrangement. On a Feb. 6 appearance on “The Ellen DeGeneres Show,” Jordan said he still lives with his parents. >> Read more trending news  “I love my parents, but we have a roommate relationship right now, which is interesting...
Take our poll: Would you vote for a levy to pay for school security?
Take our poll: Would you vote for a levy to pay for school security?

After 17 people died in a high school shooting in Florida, one Ohio mayor wants school leaders to consider using the ballot box to improve school safety. WOIO-TV reports Streetsboro Mayor Glenn Broska in a Facebook post reacting to last week’s Parkland, Florida, school shooting says the Streetsboro schools should either “find&rdquo...
Dayton web curating company gets Silicon Valley shoutout
Dayton web curating company gets Silicon Valley shoutout

If you have worthwhile content, a sizable social media following and the vision to monetize all of that, then Arielle Jordan would like a word with you. Jordan, of Miamisburg, is the creator of Curafied, a new Internet platform that enables users to place what they believe is expert, valuable content behind a paywall for publication in a user-friendly...
Ryan Reynolds shuts down troll who criticized Make-A-Wish kids visiting ‘Deadpool’ set
Ryan Reynolds shuts down troll who criticized Make-A-Wish kids visiting ‘Deadpool’ set

Ryan Reynolds isn’t just a charming actor. He’s also a renowned social media goofball who is really great at shutting down trolls. On Monday, the 41-year-old movie star took to Instagram to share a few photographs of himself — in character as the R-rated mercenary Deadpool — hanging out with some children with life-threatening...
More Stories