Sales of vehicles in China, the world’s largest automobile market, in May remained approximately at the level of the previous year, while the increased demand for trucks offset the deterioration in sales of passenger cars.
As reported on Monday by the government of the Chinese Association of Automobile Manufacturers, the total sales of vehicles decreased in annual comparison by 0.1% to 2.1 million units.
Sales of passenger cars declined in May by 2.6% to 1.75 million units. In April, the decline was 3.7%. This was the most severe decline since mid-2015, when the government had to reduce the auto sales tax from 10% to 5% to support demand.
The announcement of an increase in the tax rate to 7.5% since the beginning of 2017 led to an increase in sales in late 2016 and a reduction in demand in early 2017, analysts of the automotive sector noted.
In the first five months of 2017, sales of passenger cars in China grew by 1.5%, while for the entire 2016 the growth was 15.9%.
Sales of trucks in May, on the contrary, remained high. They rose in annual comparison by 15.2% to 345,000 units. For the first five months of the year, sales in this segment increased by 17.5%.