China Automobile Import Up by 2 Digit YOY in Aug 2016
Chinese Brands Down to Yearly Bottom in Market Share
According to China Customs statistics, during January-August 2016, China imported 666,000 automobiles, down 6% year-on-year (YOY); the import value reached CNY 184.92 Billion, up 1.4% YOY; the average import price was CNY 278,000 per auto, up 7.9% YOY.
1. Characteristics of the Automobile Import in August 2016
(1) Import quantity rebounded month-by-month from May, and August quantity increased by double digit YOY (see the chart below).
(2) Most of the import was through ordinary trade mode, much less by logistics via Customs special control areas.
(3) The import from EU increased faster than from Japan and USA.
(4) Import quantities of 2.5L-3L-displacement gasoline SUV and 1.5L-2L-displacement gasoline small sedan exceeded 20,000 respectively, while that of smaller-displacement gasoline small sedan reduced by much (see the table below).
2. Causes of the Import Growth Faster YOY in August
(1) With destocking effective, domestic sale of autos went well and led the import demand to recovery.
(2) Purchase tax halving covers imported autos, thus driving the import of small-displacement passenger cars.
3. Notable Problems
(1) Chinese-branded new-energy vehicles are dependent on government subsidy and weak in competition, so transnational manufacturers are seizing the market in China.
(2) In competition with import brands and joint-venture brands, Chinese-branded passenger cars are reducing in domestic market share.