2013 Auto Sales off to a hot start

Published on Author howe

Chinese auto sales in January and February rose 19.5% over the same time last year. Analysts predict that moderate growth will continue for the rest of the year, following a slack sales year in 2012. The encouraging numbers were pushed partly by rising GM and Ford sales, while Japanese brands faired poorly.

These numbers are good news for American manufactures that will need to continue to increase sales in the world’s largest auto market. The Chinese government’s push for better fuel efficiency may partly explain GM and Ford’s success. Both companies have invested in greener technologies to meet US regulations and consumer demands. This technology may become even more valuable if demand for clean cars grows in China.


6 Responses to 2013 Auto Sales off to a hot start

  1. Another Yahoo article points out that despite the overall growth in the auto-industry, there has been a decrease in truck sales: “truck sales overall declined 41.4 percent while those of larger trucks declined 28.5 percent.” This fact parallels China’s long-standing preference for passenger vehicles seen in class reading. Furthermore, sport utility vehicle sales increased by 90.5 percent – which sheds more light on the stigma associated with owning a truck.
    Source: http://finance.yahoo.com/news/chinas-january-auto-sales-surge-46-percent-083716937–finance.html

  2. 1. At the current pace, GM might sell 3 million vehicles in China this year – potentially 25% more than in the US, and it’s doing very well in an expanding US market.

    2. As countries develop, demand shifts from commercial vehicles to private / personal vehicles. In Japan, the “turning point” was 1966; until then trucks dominated. In the US the Model T was turned into a truck or “jeepney” bus by those with such needs. I know of no way to break final use down into personal transportation versus the transportation of goods.

  3. I’m concerned primarily about the particular wealth distribution pattern. Wealth is (generally) concentrated in the largest cities, most of which have implemented congestion controls of some sort, which may prove to be a significant hurdle to potential private car owners. I’m wondering if China will eventually transition to a more public-transport dependent economy, such as Japan.

  4. I find this post fairly interesting as Chinese auto sales rose 4.3 percent in 2012 in part due to restrictions imposed by some cities to control traffic congestion and pollution. I’m curious to see whether future regulations will be imposed to counter the dramatic increase in sales we have seen thus far.

  5. I like to see an update to current events. Please revise 2013 Auto Sales off to a hot start Economics 274 Fall 2013 in terms of economy auto sales, thanks.