China auto sales rebound in June after lackluster first half

BEIJING (AP) — Auto sales in China rose 3.4% from a year earlier in the first half of 2022 as virus checks kept buyers away from dealerships, but demand in the world’s largest market for the industry rebounded in June, an industry group reported Monday.

Sales in January-June reached 10.4 million, according to the China Association of Automobile Manufacturers. June sales jumped 41.2% from a year earlier to 2.2 million after the easing of controls that shuttered Shanghai and other industrial hubs.

Total vehicle sales, including trucks and buses, fell 6.6% from a year earlier in the first half to 12.1 million, CAAM reported. Total sales in June rose 23.8% to 2.5 million.

The decline in total sales was less severe than an estimate of a 7.1% contraction released Friday by CAAM based on data from major brands. Sales growth in June was stronger than the previous estimate of 20.9%.

Auto sales in China have been hurt by consumer jitters about the economic slowdown and anti-virus controls imposed from late March.

Production was hampered by shortages of processor chips and disruption of global supply chains.

The slowdown is squeezing cash flow from global automakers that are looking to China to drive sales growth and spending billions of dollars to meet government sales quotas for electric vehicles.

Sales of electric and gasoline-electric SUVs and sedans rose 130% from a year ago in June to 596,000, according to CAAM. Sales for the first half of 2020 increased by 115% to reach 2.6 million, which represents half of the global market.

The Associated Press