Car sales in China up 36 percent in January-May period

12. August 2021

Sales of vehicles increased again in China. In the January-May 2021 period, car sales increased 36.6 percent year-on-year, with a total of 10.88 million units sold. Sales of passenger cars including sedans, SUVs, vans and MPVs rose to a total of 8.44 million units, registering a year-on-year increase of 38.1 percent. In May alone, 2.13 million vehicles were sold, with a slight year-on-year decline of 3.1 percent. The figures were compiled and published by the Chinese Association of Vehicle Manufacturers. The increased demand also means positive growth forecasts for vehicle production. As part of this, many parts and components manufactured for the Chinese market require CCC certification in order to be approved for import, use and sale in China.

 

 

The number of passenger cars sold in May was 1.58 million. This represents a decrease of 2.6 percent year-on-year and 4.8 percent compared to the April figure. The data was provided by the China Passenger Car Manufacturers Association (CPCA). However, analysts do not attribute the decline to economic reasons. Rather, there was a backward shift in car purchases due to the Shanghai Auto Show, which took place in April, and holidays in May. In addition, the month of May had fewer working days than the previous month, there were isolated new outbreaks of Covid-19 in some provinces, and supply problems with computer chips for the automotive industry.

By manufacturer, FAW Volkswagen, SAIC General Motors and SAIC Volkswagen ranked the top three in May. FAW Volkswagen sold 168,000 vehicles in one month, down 7.7 percent from the same month last year. Among wholly Chinese-owned companies, Geely, Changan Auto and SAIC-GM-Wuling made the top 10, with Geely selling 86,000 vehicles in the month of May, down 18.9 percent year-on-year and 6.5 percent compared to April’s figures. Japanese joint ventures also appeared in the top 10. Dongfeng-Nissan sold 88,000 vehicles in May, compared to 66,000 for Dongfeng-Honda, with sales down both year-on-year and month-on-month. Declines of 16.1 percent and 13.7 percent were recorded, respectively. Dongfeng-Honda reported a slight year-on-year increase of 1.2 percent, but suffered a steep drop of 22.4 percent compared to the previous month of April, when the company sold 85,000 vehicles. This is also the steepest decline of any automaker in the top 10.

Although the Covid 19 pandemic and supply problems with chips continue to affect the automotive market in the first half of the year, analysts say demand is only lagging, not falling. Electric cars and intelligent driver assistance systems have sparked customer interest, and these trends will positively support demand for new cars.

Vehicles and components must be awarded a CCC certificate in order for products to be exported to China or manufactured locally. CCC certification is a complex project that requires professional support at all stages. For several years MPR China Certification GmbH has been entrusted with large CCC projects for the vehicle manufacturers Lotus, Tesla and Bugatti. We will be pleased to provide you with non-binding advice on the scope and requirements of a China CCC certification.

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