MOFCOM expects growth of 2021 auto sales in China

Beijing (Gasgoo)- China’s annual vehicle sales in 2021 are expected to realize growth after falling for three consecutive years even though new vehicle sales have decreased for four months in a row from May this year, an official from the country’s Ministry of Commerce (MOFCOM) said today.

Wang Bin, deputy director general of the Department of Market Operation and Consumption Promotion, said that the decreasing rate of August vehicle sales volume widened by 5.9 percentage points from the previous month.  

The official attributed the decrease to several reasons. During the same time last year, the sales saw a significant rise as the pent-up demand for new vehicles was unleased thanks to the government’s effective control over the epidemic and timely policies for promoting automobile consumption.

However, in August this year, the auto market was plagued by the sporadic domestic spread of the virus and global chip shortage, which slowed down production, supply, and demand, the official added.

Besides, after years of rapid growth, China’s auto market is entering into a steady stage of development under the influences of the environment, traffic, safety, and income.  

The ministry will continue to adopt favorable measures to spur the market demand. The Ministry of Commerce will work with other departments to form new development pattern for auto industry which features echelon consumption, high-efficient usage and green circular development.

The ministry is also pushing to eliminate unreasonable restrictions of second-hand vehicle trading, allowing cross-province registration and vehicle relocation. Additionally, the regulators plan on actively promoting new energy vehicles in rural areas, increasing new car consumption.