China’s auto market rebounds; October SUV sales up by 61 percent

November 12, 2015
China’s automotive market appears to have rebounded in October after several months of trouble.

Sales of sedans, SUVs and minivans surged by 13.3 percent to 1.9 million units for the month, up from a modest 3.3 percent gain in September, according to China Association of Automobile Manufacturers data cited by The Detroit News.

The world’s largest automotive market has been on a roller coaster ride this year, starting off strong before stock-market trouble sent deliveries backwards for three consecutive months.

Many automakers responded to the turmoil by slashing prices to boost sales. The latest report suggests government intervention, namely a tax cut on vehicles with small engines, may have had an even greater impact on the turnaround.

Mirroring US tastes, SUV sales in China surged by more than 60 percent in October as sedan numbers remained flat. Growth is said to have been driven by Chinese brands, partially recapturing market share lost to foreign joint ventures before the slump.

GM appears to be among the leading foreign brands in terms of growth, with October shipments up by 15 percent to 327,000 units. Buick continues to be a particularly strong seller, with brand sales up by 42 percent — exceeding 100,000 units for the first time.

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