Market fell 16% in June, trade group estimates


China’s new vehicle market contracted for the second consecutive month in June amid a persistent shortage of semiconductor chips, the China Association of Automobile Manufacturers said on Monday.

Car and truck deliveries were under 1.93 million units, down 16% from a year earlier, the industry’s leading trade group said, relying on a preliminary count of its members.

Honda Motor Co. and Nissan Motor Corp. also saw their sales drop in China last month. Honda said it sold 118,168 vehicles in China in June, down 17% from the previous year, while Nissan said in a statement that it sold 114,605 ​​vehicles, down 16%.

Overall, demand for new light-duty vehicles – sedans, crossovers, SUVs, utility vehicles and minibuses – fell 15% across the industry, while sales of new commercial vehicles such as trucks and buses fell 15%. fell by 21%, according to estimates by CAAM.

The trade group did not release an estimate for light vehicle or utility vehicle volumes in June.

In the first quarter, sales of new vehicles in China jumped 77% compared to the same period of 2020, hit by the new coronavirus.

China, the world’s largest market for new cars and light trucks, has become an indicator for the fortunes of the industry, especially sales of electric vehicles.

With vehicle production increasingly constrained by chip shortages, sales across the industry fell in May, falling 3.1% after rising 11% the month before. May also marked the industry’s first decline in 14 months.

Due to a strong rebound in the first quarter, demand for new vehicles in the first five months jumped 25% from the previous year to 12.8 million, according to CAAM estimates.


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