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China auto sales: Domestic brands lag behind global rivals

By
From page C2 | June 20, 2014 |

BEIJING (AP) — Sales in the world’s biggest auto market accelerated in May but domestic Chinese brands lagged and their market share shrank, an industry group reported Tuesday.

Sales of passenger vehicles rose 13.9 percent to 1.6 million, according to an industry group, the China Association of Automobile Manufacturers. Sales for January-May were up 11.1 percent to 8.1 million vehicles.

Total vehicle sales, including buses and trucks, rose 8.5 percent in May to 1.9 million.

Auto sales growth in China has cooled steadily since peaking above 40 percent in 2009. This year’s sales are forecast to grow by 8 to 10 percent.

Passenger vehicle sales by Chinese brands lagged the overall market, rising 5.4 percent, according to CAAM. Their market share declined 2.9 percentage points from a year earlier to 36.5 percent.

Domestic brands have struggled to keep up with bigger, richer global rivals. Industry analysts say their quality is improving and they expect sales gains with the planned launch this year of new models by a number of Chinese automakers.

China’s economic growth declined to 7.4 percent in the first quarter after last year’s 7.7 percent expansion tied 2012 for the weakest performance since 1999. The ruling Communist Party’s growth target for the year is 7.5 percent but officials already have cautioned it might come in below that level.

Earlier, General Motors Co. said sales of GM-brand vehicles by the company and its Chinese partners rose 9.2 percent in May. It said that brought total sales by its Shanghai GM joint venture with state-owned Shanghai Automotive Industries Corp., founded in 1997, to more than 9 million units.

Ford Motor Co. said sales rose 32 percent to 93,323 vehicles. Year to date, that raised Ford’s sales were up 39 percent to 461,473 vehicles.

Nissan Motor Co., the most popular Japanese brand in China, said May sales rose 3.1 percent to 106,100 vehicles. It said sales to date this year rose 15.4 percent to 507,700. Rival Toyota Motor Co. said sales rose 102.7 percent to 81,100 vehicles.

 

The Associated Press

The Associated Press

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