China retail car sales rise 30% in May vs April, preliminary data shows

RETAIL car sales in China jumped 30 per cent in May from April, preliminary data published by an industry body showed, as authorities rolled out stimulus to revive the market depressed by the country's measures to combat the spread of Covid-19.

Sales of passenger vehicles in May fell 17 per cent from the same period a year earlier to 1.35 million units, according to preliminary data released by the China Passenger Car Association (CPCA) on Wednesday (Jun 8).

The CPCA is scheduled to release final May car sales data on Thursday.

The world's biggest auto market is extending the recovery as car sales during June 1 to 5 were 6 per cent higher than the same period in May, CPCA said.

The world's biggest auto market has been hit hard in recent months by China's efforts to combat Omicron, which saw the country put many parts of the country including Shanghai under stringent lockdowns.

Passenger vehicle sales in the first 3 months increased 9 per cent from a year ago, according to China Association of Automobile Manufacturers.

Authorities are trying various incentives to revive the market, with the latest being a halving of the purchase tax for cars priced at no more than 300,000 yuan (S$61,705) and with 2.0-litre or smaller engines to 5 per cent of the sticker price from Jun 1.

The move could lead to an increase of 2 million extra car sales this year, according to the CPCA.

The country's most congested cities, including Shanghai and Shenzhen, have increased car ownership quotas while local governments are also subsidising people who exchange their old combustion cars for new electric ones. REUTERS