Monday June 15, 2009

China car sales jump beyond imagination with 2-month wait

bloomberg.com :

Zhao Hang, who helped devise China's auto-stimulus package, is facing demand from car buyers battling an unexpected consequence - two-month waiting lists. Zhao said : "Given the world economic situation, demand for cars is surprisingly strong in China." Beijing drivers, used to leaving showrooms with new cars the same day, now have to wait 3 weeks for a Hyundai Yuedong Elantra, China's bestselling car, or as long as 8 weeks for a Honda CR-V. In May 2009, passenger-vehicle sales surged 47% from a year earlier.

Auto sales have surged after the government offered subsidies and cut retail taxes as part of a 4 trillion yuan ($585 billion) economic stimulus plan. Combined with a 37% slump in US auto sales, the surge has made China the world's largest auto market. Beijing Hyundai ran plants at near-full capacity last month, while Honda's two China ventures have been running with three shifts because of demand for models including the Honda City and the Honda CR-V, the bestselling SUV in China.

- This is quite a contrast compared to the recent GM and Chrysler bankruptcy filings. Whilst the American car-makers seem unable to shut down fast enough, half a world away, the Chinese automotive industry seems unable to churn out new cars fast enough. Like that guy said, it's kind of surprising given how a pretty big chunk of China's economy is export-oriented and exports are supposed to be falling what with the global recession and all. It remains to be seen how much of this demand is for real and how much of it is just a temporary boost from their economic stimulus plan.

See also :

1. Small cars staging big comeback
2. China welcomes small cars back to its streets
3. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced

(2009-06-15 19:31:54 SGT) [Energy] Permalink

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