China is nowadays the country where everything sells best. Whether it’s smartphones, computers or even cars, this country is now one of the biggest consumers in the world and this is very noticeable. In the particular case of the automobile market, the China Passenger Car Association (CPCA) has just announced that new car sales have increased by up to 20% this year compared to last year.
Strong growth among local car manufacturers
If the Chinese car market has reached such a level of growth, it is above all thanks to the multiple efforts made by local manufacturers in recent years. Indeed, according to the latest figures presented by the CPCA, Guangzhou Automobile Group has experienced a huge 107.6% growth in net profits in the first three quarters of this year. The same case is observed at BYD, which was able to achieve net profits of 3.66 billion yuan (about $539.8 million) during the same period. This is equivalent to an increase of 86.82% over last year. Finally, SAIC Motor also enjoyed a good growth as its net profits amounted to 23.09 billion yuan from the beginning of this year to September. In short, all of this is helping to boost China’s automotive market, resulting in a total growth of 15.2% compared to the same period in 2015.
Production also on the rise
While sales are growing, production has also been boosted at most Chinese carmakers. According to figures recently presented by the China Association of Automobile Manufacturers (CAAM), there has been a 14.1% growth (19.4 million units) in automobile production since January to September 2016. In detail, this rate is divided with an increase of 14.7% for passenger cars and 4.8% for commercial cars.