China's auto sales rise for fifth month in November

China's auto sales rose for a fifth straight month in November, as the world's largest auto market leads the global industry's recovery from the COVID-19 pandemic with strong demand and policy stimulus.

The sales volume of passenger cars grew 8 percent year on year to about 2.1 million, according to data released Tuesday by the China Passenger Car Association (CPCA), as China has been easing purchase quotas and giving subsidies to car buyers so as to boost sales.

"The sales showed a low-to-high trend this year," said Cui Dongshu, secretary-general of the CPCA, noting retail sales were mainly impacted by the COVID-19 pandemic and an early Spring Festival. But the market had maintained robust growth since July.

Strong sales of electric cars contributed to the sustained rebound in the Chinese market. Wholesale sales of new-energy vehicles (NEV), including electric cars, surged by 128 percent last month to 180,000 vehicles, according to CPCA.

Tesla sold a record 21,604 locally made vehicles in China last month, a 78-percent increase from October, ranking third in NEV sales, following General Motors' China joint venture Wuling and domestic brand BYD.

"The growth in sales share for domestic brands was mainly thanks to new energy vehicles. The sales share for traditional cars made by domestic brands was flat compared to that of last year," Cui said.

Global automakers have come to rely on China as other major markets in Europe and North America are suffering from second waves of coronavirus infections. Honda's sales in China increased 22 percent year on year in November, and Nissan's sales rose 5.2 percent.

China's auto market would see car sales drop by 7 percent this year. But it is predicted to grow by 7 percent in 2021, and sales are expected to jump around 30 percent due to a low base point from a year ago, according to Cui.

(with input from agencies)

(Cover: An auto show in Pudong, Shanghai, China on October 3, 2020. /VCG)