China auto sales in March slump 43.3% year on year

Shanghai (Gasgoo)- China auto outputs and sales reached 1.422 million units and 1.43 million units in March, declining 44.5% and 43.3% over a year ago respectively, while tremendously surging from February thanks to the orderly recovery of production and operation, according to the China Association of Automobile Manufacturers (CAAM).

For the first quarter of the year, both outputs and sales of the world’s largest auto market still slumped over 40% from a year ago. Complete vehicle manufacturers have almost resumed full operation and most production businesses, the association said based on a survey involving 23 automobile enterprises. However, some of the demands were still curbed as the pandemic hasn’t been eradicated yet.

It is foreseeable that the market will get faster recovery with the frequent roll-out of incentives launched by the central and local governments to spur car sales.

Compared to the prior-year period, PV outputs and sales in March plunged 49.9% and 43.3% respectively, 33 and 33.3 percentage points fewer than the decrease in Feb. volumes.

For the first three months, PV sales dwindled 45.4% year on year. The decline in car and SUV sales volumes stood at 47.6% and 39.6% respectively.

(Photo source: SAIC Volkswagen)

According to the CAAM's figure, China produced roughly 50,000 and sold 53,000 NEVs (excluding Tesla vehicles) in March, down by 56.9% and 53.2% from a year ago. BEV sales dropped 55.6% to around 40,000 units, and PHEV sales showed a 44.1% year-on-year slump to 13,000 units.

In addition, there were 38 (+5.6%) and 36 fuel cell vehicles output and sold in China last month.

To speed up revival of auto market bruised by the coronavirus, China has decided to extend the subsidies and tax exemption provided for the purchase of NEVs, which were due to be removed by the end of this year, for another two years.