2nd UPDATE:China Jun Auto Sales +36.5%; May Exceed 11 Million In 09
09 Juli 2009 - 10:45AM
Dow Jones News
China's auto sales in June rose at their fastest monthly rate so
far in 2009, putting the country on track to overtake the U.S. as
the world's biggest auto market this year.
China's auto sales last month jumped 36.5% from a year earlier
to 1.14 million units, and sales in the first half rose 17.7% from
a year earlier to 6.10 million units, the China Association of
Automobile Manufacturers said in statement.
Separately, the official Xinhua News Agency cited the
semi-official industry association as saying China is likely to
sell more than 11 million autos this year. That would represent a
17.3% increase from the 9.38 million units sold in 2008 and be
above CAAM's earlier prediction of 10.2 million units.
In contrast, U.S. car and light truck sales in June fell 28%
from a year earlier to 860,000 units, according to market-research
firm Autodata Corp. The annualized sales for the U.S. are 9.69
million, the firm said.
While car sales have been ravaged in the U.S. by the global
financial crisis and credit crunch, they have benefited in China
from favorable tax policies on small cars and subsidies for vehicle
purchases in rural areas.
General Motors Corp.'s (GM) sales in China rose 38% in the first
six months this year from a year earlier to 814,442 units, a record
for the company. The company expects sales volume growth of more
than 20% for the full year, GM China President Kevin Wale told Dow
Jones Newswires on Wednesday.
Sales have been especially strong at GM's mini
commercial-vehicle joint venture, SAIC-GM-Wuling Automobile Co.,
which manufactures cars eligible for a purchase tax cut implemented
earlier this year. The venture's first-half sales rose 50% from a
year earlier to 524,598 units.
However, sales of large-engine and luxury cars have also risen
amid improvements in China's economy, including a turnaround in the
real-estate sector, sharp gains in the stock markets and an
explosion in credit growth.
Declines in urban property prices in China slowed for the second
consecutive month in May as sales volume expanded, while the
Shanghai Composite Index is up 70% since the end of last year.
China's new yuan loans, meanwhile, soared to CNY1.53 trillion in
June, more than double the CNY664.5 billion in May.
Sales of BMW AG's (BMW.XE) core BMW brand in China during June
rose 46% from a year earlier to 8,033 cars. Audi AG's (NSU.XE) car
sales in China and Hong Kong rose 28% in June to 13,265 units.
In China's overall passenger vehicle market, sales rose 48.4% in
June from a year earlier to a record 872,900 units, CAAM said.
In the six months ended June 30, auto sales rose 17.7% from a
year earlier to 6.10 million units, the association said.
Passenger vehicle sales rose 25.6% to 4.53 million units in the
first half, but commercial vehicle sales fell 0.5% to 1.57 million
units.
-By Patricia Jiayi Ho and J.R. Wu, Dow Jones Newswires; (8610)
6588 5848; patricia.ho@dowjones.com