SINGAPORE (ICIS)--China’s vehicles sales in July increased 16.4% year on year to 2.1m units as stimulus measures from the government continued to drive broad recoveries in consumption and market vitality, industry data showed.
This was the fourth consecutive rise in monthly vehicle sales, according to data from China Association of Automobile Manufacturers (CAAM).
Production also grew for the fourth straight month in July, rising 21.9% year on year to 2.2m units.
On a month-on-month basis, however, July vehicle sales and production were down by 8.2% and 8.2%, respectively.
For January to July 2020, total vehicles sales were down 12.7% at 12.4m units, with production down 11.8% on year at 12.3m units.
Despite strong sales in July, both automakers and dealers were holding high inventories, the CAAM said.
The association expects the effects of the government’s stimulus measures on car sales to gradually weaken in coming months and recommends market players to avoid inventory build-ups.
The automotive industry is a major global consumer of petrochemicals, which account for more than a third of the raw material costs of an average vehicle.