China's light vehicle sales have increased six percent to 1.3m units, says CAAM, although Mercedes-Benz and Japanese automakers trail behind
According to the China Association of Automobile Manufacturers, the auto market bounced back in October after months of lacklustre sales. Many Western luxury brands are still enjoying a strong market share, however car buyers are avoiding Toyota, Nissan and Honda as the nation's territorial dispute with China continues to rage.
The SUV market showed the strongest growth, with sales rising 12% to 164,200 units. Low-price minivans – or “bread loaf vans” (after their shape) – were also popular, with demand rising to 187,900 units. Sedans performed reasonably well, with sales rising five percent to 905,100 units, however MPV sales dropped seven percent to just 41,700 units.
Both Great Wall Motor Co and Zhejiang Geely Holdings performed well on the back of strong SUV and Sedan sales. Geely saw October sales increase 35% as exports doubled, while Great Wall Motors SUV sales surged 55% in September.
As expected, sales of European-made luxury cars also continued to soar. BMW says group sales in China exploded 52% year-on-year to 27,828 units in October, even outpacing rival German carmaker Audi, which continues to occupy the number one spot for foreign luxury cars. Mercedes-Benz, out-priced by BMW and Audi, underperformed during the October period.
Japanese carmakers are feeling the effects of the international dispute in a dramatic fashion. Toyota Motor Co have already cut full year sales forecasts by one fifth as sales drop 44% in one of its most important markets. As a result, Toyota has had to cut back on domestic investments. Koito Manufacturing Co, a supplier for Toyota, has abandoned construction on a new plant as future demand remains unclear.