BEIJING – China’s imported vehicle volume continued its decline over six consecutive quarters through H1 2016, according to “The Market Report of China’s Imported Vehicles in H1 2016” released by Sinomach Automobile Co., Ltd.
The growth rate of imported vehicles dropped by 9.35 percent in H1 2016. Total volume of imported vehicles was 479,000 units in H1 2016, down by 8.4 percent over the same period of last year and declining by 24.2 percent compared with 2015, with decreasing rate narrowing by 15.8 percentage points. Destocking took about three quarters in 2012-2013, it is thus predicted that it will take longer this time.
According to delivery data of 30 dealers calculated by China Import Vehicles Market Information Association, sales volumes of imported vehicles were 421,000 units in H1 2016, a year-on-year decline of 9.3 percent or a decline of 20.6 percent compared with 2015, with decreasing rate narrowed by 11.3 percentage points.
Inventory amounted to 4.5 months in June, less than the 4.8 months of the same month of last year. Moreover, according to data from China Automobile Dealers Association, imported vehicle dealers’ inventories in May and June were 1.52 and 1.35 months respectively, which means that automakers including parallel dealers have faced the pressure of huge inventory.
The average discount of imported vehicles in June was ¥79,000 ($12,154), a discount rate of 12.7 percent, and a month-on-month decline of 0.4 percentage point, but that was still above the 12.2 percent in the first quarter.
Parallel import volume was 54,548 units in H1 2016, up by 9.15 percent on a yearly basis, accounting for 11.2 percent of the imported vehicle market. With 90 percent of the market share, SUVs were the leading parallel imported models. There were 58 dealers engaged in parallel import in H1 2016 with total import volumes reaching 35,662 units. Import volumes of nine of the dealers even surpassed 1,000 units. The total parallel import volumes of the top 15 dealers were 38,829 units with a concentration rate of 90.4 percent.