China’s total passenger vehicle (PV) sales, comprising cars, SUVs, and MPVs, are expected to grow by 7.9pc to 2.315mn units as compared to the preceding year, according to the China Passenger Car Association (CPCA).
The association said that sales are expected to remain high driven in December by the local subsidy policy which will support the auto market before its expiration by the end of the year.
In the first week and second week of December, the average daily PV sales stood at 38,366 units and 53,414 units, up by 26pc and 15pc, respectively, from the prior-year period.
The average daily PV sales in the first two weeks of December rose by 19pc to 46,469 units from the same period in the previous year.
A stable macro-economic climate, the high personal vehicle demands due to winter, and restored confidence of the dealers over the robust performance of the overall PV market have boosted the sentiments, CPCA said.
The association added that the export demand has been increasing in the past few months and will continue to increase rapidly as compared to the previous year.
CPC also noted that traffic restrictions for non-local plates implemented in Shanghai and the new license plate lottery policy issued in Beijing is also expected to increase new energy vehicle (NEV) sales in December.
The CPCA is expecting China’s average daily PV sales in the third week of December to grow by 14pc and then by 16pc in the fourth week from the same period in the preceding year.
The association said that the total PV sales in 2020 are expected to decline by 66pc to 19.317mn units from the prior year because of the impact of the COVID-19 pandemic on the auto industry across the globe in April and May.