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.
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.
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.