China Vehicle Sales Rise for Third Month as Pandemic Eases – Bloomberg

Vehicle sales advanced for a third straight month in China, signaling that an economic rebound is gathering pace as the coronavirus pandemic gradually abates in the country. Sales of passenger cars such as sedans and SUVs, as well as commercial vehicles, increased 11% in June from a year earlier to 2.28 million units, the China Association of Automobile Manufacturers said Thursday in a statement, citing preliminary figures. From the preceding month, the increase was 4%.

Customers in the world’s largest car market are slowly returning to showrooms as the government eases restrictions, adding to evidence that the auto slump in its third year may be easing. The pandemic exacerbated a decline in sales, with an economic slowdown, trade tensions with the U.S. and stricter emission standards further weighing on demand.

“The 11% growth in June estimated by CAAM should be largely driven by commercial vehicles,” said Shi Ji, an analyst with Haitong International Securities Co. in Hong Kong. “High inventory level industrywide and slower recovery for some brands could lead to widening discounts in the second half.”

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