China’s auto production increases 18.2% in May

China’s auto production posted a year-on-year increase of 18.2% in May to 2,187,000 units, according to data from the China Automobile Manufacturers Association.

For its part, car sales totaled 2 million 194,000 units, an increase of 14.5%, at the annual rate.

«In May 2020, the internal situation of the fight against the epidemic continued to improve, companies accelerated the realization of the restoration of production (…) Depressed demand also accelerated and the automotive market gradually recovered,» said the Association in a statement issued this Thursday.

In the beginning of 2019, the world economy shifted from a moderate expansion trend to a sharp slowdown due to the effects of trade friction and the impact of the Covid-19 expansion from China to North America, Europe and Asia.

Initially, auto markets plummeted in China and some emerging countries, but they held steady in developed countries and declined only slightly in the world at large.

However, Covid-19 has begun to have a major impact, leading to the suspension of factory operations and the suspension of dealer business worldwide.

Auto production

But in China, auto production and sales in May showed double-digit growth.

The growth rate of the sale and production of cars (passenger vehicles) changed from negative to positive, of which SUV production and sale continued to maintain positive growth. Quickly, heavy trucks and light trucks have set a record for May sales.

However, sales of new energy vehicles (NEVs), which include battery-powered electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles, declined for 11 months in a row, to reach 82,000 units.

In May, car production was 4% higher than the previous month.

In sum, in the first five months of the year, China’s auto sales fell 22.6%, compared with a 13% drop the year before.