China sells 1.19 mln vehicles in May, down 13.95% m/m

Shanghai, June 2 (Gasgoo.com) China's vehicle output in May reached 1.37 million units, down 14.36% month on month, while sales came to 1.19 million units, down 13.95% m/m, China Automotive Technology & Research Center (CATARC) said on June 1 2010.

Reportedly, passenger vehicle sales (including sedans, SUVs and MPVs) in May fell 10.85% m/m, rose 25.02% y/y, to 885,000 units. In January-May this year, passenger vehicle output and sales rose 53.73% and 28.70% from a year earlier, to 5.31 mln and 4.57 mln respectively.

Meanwhile, commercial vehicle sales (including buses, trucks and pick-ups) slipped 21.76% m/m, raised 45.52% y/y, to 308,000 units. In January-May this year, commercial vehicle output and sales grew 47.92% and 54.04% from a year earlier, to 1.86 mln units and 1.47 mln units respectively.

Overall, in the first five months, China vehicle output and sales increased 52.18% and 34.07% y/y, to 7.17 mln units and 6.05 mln units respectively. The inventory grew to 1.12 mln units.

With sales down and inventories increasing, China's carmakers have started adjusting the production capacity in recent months. For eight days in April, the daily vehicle output exceeds 60,000 units, while the highest single day output in May is 58,512 vehicles, with the average daily output falling 16.71%, compared to April.

However, from the perspective of the vehicle inventory cycle, it is a normal monthly decline if the cycle time is between 45 days and 60 days, (The cycle time from January to May are 43 days, 41 days, 48 days, 49 days and 52 days respectively.), CATARC director Zhao Hang explained.