A few days back, the China Association of Automobile Manufacturing (CAAM) released the September China auto wholesale numbers which were pretty interesting to look at. Quite a bit of analysis is also possible from the declared shipment numbers, mainly with regard to demand for passenger vehicles. The numbers also gave an idea who is ruling the auto industry in China and who are the laggards. While the macro-environmental conditions in China are not too favorable to date, such impressive numbers do suggest that "all is shining" in the Chinese land with respect to the automotive sector. Let's take a sneak peek into the numbers and try to make some analysis on the demand curve.
Mixed demand for passenger vehicles
September passenger vehicle sales remained positive, though it was slightly lower standing at 6.4% from what the consensus had expected. It appears that the reason behind this could probably be the readjustment of inventory by brands such as Volkswagen (VLKAY), Ford (F) and General Motors (GM) – all foreign brands ruling the Chinese soil.
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Interestingly, the entire picture has been pretty distorted with Volkswagen and Ford which usually are the market leaders lagging behind in the September sales report, while the usual laggards such as GM and Chevrolet both saw sales grow positively over 20% in the month compared to their usual growth profile.
However, if we were to judge based on individual companies' points of view, the end-demand remains healthy enough to pull the sales up in the subsequent months, which makes me believe that this September weakness of Volkswagen and Ford is a one-time event which will fade off in the consecutive monthly reports.
SUVs on the sales high
China's population has always expressed their love for the SUV vehicles of the various companies selling their models in the nation. Consistent with this long-lasting trend, SUV sales remained robust while sedan sales were soft in September this year. In total, the SUV sales jumped 26%
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