Lockdowns off
July was a good month for car dealers in China. Last month, car sales increased by 29.7 percent to 2.42 million cars compared to July 2021, news agency reported. Reuters. The rising sales are due to lifted lockdowns and government measures.
The Chinese government’s ‘zero covid’ policy hit China’s auto sector hard. It had a significant impact on both the sales and production side, as people were no longer able to go to showrooms and factories remained closed. To get people back to buying cars, the Chinese government lowered the purchase tax on small-engine models and policymakers provided subsidies on EVs to encourage people to trade in their fuel-powered cars. That works, because sales of EVs, plug-in hybrids and hydrogen cars increased by 120 percent last month compared to July last year.
The sales figure in July is also 3.3 percent lower than in June of this year, when the Chinese car market started its recovery. Also, the backlog compared to 2021 has not yet been completely made up, because despite the strong recovery, 2 percent fewer cars were sold in the first seven months of this year than in the same period in 2021. That shows the impact of the Chinese corona policy. good view of government.
– Thanks for information from Autoweek.nl