When it comes to cars, China saw some healthy car sales growth in November, passenger vehicles sales up by 16 percent. Foreign businesses selling cars in China also report new car sales growth, with both Ford and GM reporting significant increases. According to reports from China, the largest automobile market in the world, consumers purchased 1.7 million passenger cars and sport utility vehicles, along with other types of vehicles.
One reason the sales of new cars rose so much in November, say the experts, is the possibility of the Chinese government cracking down on the purchase of automobiles because of smog severe traffic problems in major China’s major cities. Several of China’s cities have already begin enforcing new legislation restricting the number of new and used cars that can be registered. It is feared that many other cities will follow suit. With this move towards limiting the number of cars on China’s roadways, it looks like consumers are rushing in to purchase and registered their cars before it is too late.
Both Japanese and German auto makers also reported large increases in their auto sales in China.
The news of these figures were a pleasant surprise for automakers who have been looking for China to lead the world in global sales since Japan, the United States and Europe have not been doing well in the sales of automobiles. An industry expert in China has stated that this kind of increase in auto sales is not normal for the beginning of the year. He also stated that the growth in China’s auto market increased in November without any kind of incentives in place.
Automobile manufacturers are sparing no expense when it comes to designing cars that will appeal to China’s urban consumers. China’s top selling brand, General Motors, and its Chinese partners had its second best month in sales, rising by 13.3 percent in November.
Toyota reported that it experienced a 40.7 percent increase, along with its partners, in November auto sales with its China branch.
The Chinese luxury vehicle business, according to one expert, still has a massive opportunity for growth. This statement is based on the fact that there are only about 100 cars in the market for every 1,000 people in Asia.
With auto sales being down the past few months, the news that China’s November sales were up was certainly confidence boosting news. The slow economy and high gas prices have had a negative effect on car sales, but maybe China’s upsurge of sales in November is a good sign. Even if the threat of the government restricting the number of cars that can be registered is the main reason for the sales increase for new car purchases this November, it’s all good. An increase is an increase, and, as stated earlier in this article, automobile makers are busy improving their luxury cars so that they will sell on the upturning Chinese automobile market. Here’s hoping the trend continues!
