China’s vehicle sales expand on rising demand for new-energy vehicles

Vehicle sales in China rose at a faster pace during the first half of the year, as rising demand for new-energy vehicles and SUVs widened the nation’s lead as the world’s biggest auto market.

Retail sales of cars, sport-utility vehicles and multipurpose vehicles climbed 9.5 percent to 10.8 million units in the January-June period, according to the China Passenger Car Association. Honda Motor Co., Toyota Motor Corp. and Daimler AG’s Mercedes-Benz gained share as growth in industry-wide deliveries outpaced last year’s 8.4 percent gain.

Further, SUVs accounted for 35 percent of total passenger-vehicle sales in the first six months, compared with 27 percent in the same period a year earlier. Also, deliveries increased 18 percent to 542,527 for Honda, while Toyota’s rose 16 percent to 592,100 units in the first half. Mercedes-Benz sales surged 32 percent to 229,137.

Moreover, deliveries of new-energy vehicles jumped 126 percent to 86,374 units in the five months through May, according to data on the association’s website. BAIC Motor Corp.’s BAIC E series was top-selling electric vehicle in the January-May period, while BYD Co.’s Tang SUV was the best seller in the plug-in hybrid category, Bloomberg reported.

"Sales of SUVs continue to be robust as Chinese families who plan to have a second child are keen on the size and height of the car," Bloomberg reported, citing Zhang Xin, Chief Auto Analyst, Guotai Junan Securities, Beijing.

Meanwhile, among global car makers, sales climbed 5.3 percent to 1.81 million units for General Motors Co., 6 percent to 577,097 units for Ford Motor Co. and 3.8 percent to 609,900 units for Nissan Motor Co.