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China's mini-cars see continuing decline in sales
Shanghai, November 16, (Gasgoo.com)-Chinese local mini-car automakers witnessed a sharp and continuing decline in sales this year, official media Shanghai Securities News reported.
Sales of minicars in China's total auto sales have decreased to 14.3% in October, down from 19.4% in January, according to a Morgan Stanley report. As the mini-sized vehicle market has long been dominated by China's local automakers, like Chery and Geely. These automakers were plagued by a sluggish mini-car market this year.
QQ, a once hot-selling mini-car model produced by Chery, has experienced sharp sales decline this year. It sales slipped to 10,223 units in October down from 13,713 units early this year. Geely, another Chinese automaker who heavily rely on minicar sales sold 17,487 vehicles, 32.3% down from January sales.
Industrial analysts say that soaring oil price combined with fierce market competition has led to the slump of Chinese minicar market. Potential buyers would defer or even drop their purchase plan as oil price skyrocketed. On the other hand, most mid-range cars started to attract customers from potential mini-car buyers.
"Higher emission standards is another factor leading to decline in mini-car sales," Jia Xinguang, a senior industry analyst said. He explained that Beijing has already put Euro III emission standard in place, and this policy will soon be followed by other cities.
Another factor is that the lack of strong governmental incentives for the minicar consumption, said Zhan Xialai, mayor of Wuhu City in Anhui Province.
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