The domestic car market began to decline in the first quarter
author：newstime：2012-04-18
This year's automotive market has continued in a lukewarm state, with January and February seeing declining car sales. Recently, data from the China Association of Automobile Manufacturers showed that new car sales in the first quarter totaled 4.793 million units, a 3.4% decrease compared to the same period last year, but narrowing from December.
While the first quarter's overall car sales were not particularly ideal, the standout performer was the new energy vehicle segment, which surpassed the total sales of the previous year, reaching 10,202 units.
Explosive Growth in New Energy Vehicle Sales
Amidst the subdued first-quarter market, the explosive growth of new energy vehicles has surprised many. According to incomplete statistics from the China Association of Automobile Manufacturers, total sales of new energy vehicles by automotive manufacturers reached 10,202 units. This includes 1,830 pure electric vehicles, 1,499 hybrid electric vehicles, and 6,873 alternative fuel vehicles. Last year, domestic sales of new energy vehicles were only 8,159 units.
"Urban traffic congestion and rising fuel prices have prompted various automotive brands to introduce new energy vehicle models that meet market demands, such as the LEXUS CT200 and Prius. These factors combined have led to the explosive growth in new energy vehicle sales," said industry insiders. Experts predict that by around 2015, new energy vehicles could constitute around 1% of total vehicle sales, marking the onset of industrialization and prompting manufacturers to invest more in developing new energy vehicle models.
Despite the visible development of new energy vehicle models, many consumers are adopting a wait-and-see approach. To gain widespread acceptance, these vehicles will need to undergo market testing after mass production, and mainstream business models will require further refinement.
Possible Recovery in the Second Quarter
Statistical data shows that in the first quarter of this year, passenger vehicle production and sales reached 3.7712 million and 3.7737 million units respectively, with production up by 1.10% year-on-year and sales down by 1.25%. Commercial vehicle production and sales totaled 1.0131 million and 1.019 million units respectively, with declines of 11.40% and 10.60% year-on-year. This simultaneous decline in both passenger and commercial vehicles is relatively rare in the automotive market over the past decade.
"Due to factors such as holiday closures and overall economic weakness, automotive sales have remained stable in the first quarter of this year," sources revealed. With new car launches scheduled for March and April, the passenger vehicle market is expected to rebound.
Industry experts anticipate a boost in sales with the Beijing Auto Show in April and the release of new products and production capacity by companies like General Motors and Volkswagen in the second half of the year. As a result, passenger vehicle sales for the whole year are expected to achieve an 8% to 9% increase.
