China’s Automobile Import Down YOY in July 2016, Chinese-Owned Brands More in Stock

According to China customs statistics, during January-July 2016， China imported 568,000 automobiles, down 9.9% year-on-year (YOY); worth CNY 157.55 billion, down 3.5% YOY; at average import price of 277,000 yuan per auto, up 7.1% YOY.

1. Characteristics of the Automobile Import in July

(1) The monthly import quantity continued YOY decline (see the chart below).

 

(2) Ordinary trade mode dominated the import, with much less in logistics by Customs special control areas for the import.

(3) The import increased from EU and Japan, while decreased much from USA.

(4) The import lead was 2.5-3.0liters gasoline-driven SUVs, with increase in 1.5-2.0lit gasoline-driven cars and small-displacement ones (see the table below).

 

2. Causes of the import decline in July:

(1) Foreign brands are promoted to manufacturing in China, thus substituting for part of import demand; limousines are increasingly homemade in recent years.

(2) Chinese-owned brands increased in market share and got down the sales of imported cars.

3. Notable Problems and Suggestions

(1) Limousine prices are dipping to seize the market, while Chinese-owned brands increasing in stock.

(2) New-energy vehicle industry is growing in production and sales, but heavily dependent on government subsidy.