The world’s biggest vehicle market, China, recorded an increase in automobile sales in May, after a two-year slump.
Industry data shows that China’s automobile sales in May rose to 14.5% from May 2019, making it the second consecutive month of increase – a sign of the auto-market recovery from the COVID-19 hit.
Automobile sales in the country had suffered a slump for almost two years, but the peak of the pandemic in March had seen prices plummet drastically by 43%.
The recovery started the following month, with 4.4% rise in April, and 14.5% in May.
According to the China Association of Automobile Manufacturers (CAAM), sales of 2.19 million vehicles were recorded in May, while sales of new energy vehicles (NEVs) such as battery-powered electric, plug-in petrol-electric hybrid and hydrogen fuel-cell vehicles, fell for the 11th month to 82,000 units.
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Automakers such as the U.S.’ Ford Motor Co, Japan’s Toyota Motor Corp, and Geely Automobile Holdings Ltd, also reported positive growth in sales for the month.
According to a senior CAAM official Chen Shihua, Government support policies and improving consumer confidence contributed to the sales growth in May.
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Being the starting point of the coronavirus, China’s markets suffered one of the largest hits globally, and its recovery could well signify a similar trend for other countries.
