Chinas auto sector revives on strong demand for trucks vans – Gulf Today

Chinas auto sector revives on strong demand for trucks vans – Gulf Today

China's auto sector revives on strong demand for trucks, vans

2 hours ago

A driver waits near his car in Beijing on Friday. Agence France-Presse

Auto sales in China rose 11.6% in June from a year earlier to 2.3 million units, driven largely by strong demand for trucks and vans as Beijing ramps up infrastructure spending to revive the economy.

In a further sign the world's largest auto market is recovering from coronavirus lockdowns, auto wholesales in June rose for the third straight month to 2.3 million units, according to data from the China Association of Automobile Manufacturers (CAAM), the country's largest auto industry body.

Sales of trucks, vans and other commercial vehicles, which constitute for around a quarter of overall market, surged 63% on-year, while sales of passenger vehicles rose only 1.8%.

"The sales of trucks were driven by investment, and they were strong in past months, which was a precursor to the recovery of economic activity,“ said Yale Zhang, head of Shanghai-based consultancy AutoForesight.

Overall auto sales growth also was helped by supportive local government, said CAAM official Chen Shihua.

"After local consumption promotion policies expire, market demand may also decline.“

June's jump in overall sales follows a rise of 14.5% in May and 4.4%