By Shawn Langlois
China wrestled the new-car sales crown from the U.S. through the
first half of the year, topping six million cars and trucks at a
time when the long-time global sales leader grapples with historic
declines.
Vehicle sales in China jumped 36.5% in June from a year ago to
mark the fourth straight month that vehicle sales have topped 1.1
million units, according to data released by the China Association
of Automobile Manufacturers on Thursday.
Sales for the month reached 1.14 million units, bringing total
sales for the first half of the year to 6.09 million units, a rise
of 17.7% from the same months a year earlier thanks in part to
generous government incentives, including tax breaks and
subsidies.
"If this trend lasts for the whole year, it will put China on
top for the first time ever," said Lincoln Merrihew, managing
director at research firm Compete. "While the shift isn't at all
surprising, it's happening faster than most people thought."
The U.S. showed signs of bottoming out in June, but the results
were still dramatically off previous highs with consumers still
dealing with the sour economy. Total new car and light trucks sales
dropped 28% from a year ago, resulting in an annualized sales rate
of 9.69 million, according to Autodata Corp.
Analysts forecast the U.S. market to potentially fall short of
the 10 million-vehicle mark while China's industry group is looking
for sales in its country to move past 11 million cars and trucks by
the end of the year.
With sales still tough to come by in the U.S., Detroit auto
makers have looked to cash in on the growth in China. Sales for
bankrupt General Motors Corp. (GMGMQ) jumped 38% during the first
six months to a record 814,442 cars and trucks. Ford Motor Co. (F)
saw a 14% increase to 197,212 vehicles.
"China's vehicle market continued to outpace most expectations
for growth," head of GM China Group Kevin Wale said last week. "The
market benefited from stimulus policies adopted by the Chinese
government as well as growing demand for personal transportation in
tier-three and tier-four cities and rural areas."
-Shawn Langlois; 415-439-6400; AskNewswires@dowjones.com