[Auto/Moto] New-vehicle sales dip 1.5% in April, trade group estimates

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Retail sales of new sedans, crossovers, SUVs and multpurpose vehicles industrywide are expected to edge down 1.5 percent to some 1.6 million in April, according to estimates from the China Automobile Dealers Association. The trade group blamed the weaker sales forecast on the ongoing price war and a vehicle scrappage program the government is about to adopt. The price war and the scrappage program have prompted consumers to delay vehicle purchases, the CADA said. Chinese carmakers unleashed a fresh round of price cuts in late April. Geely Automobile Holdings, for example, slashed prices on full electric and plug-in hybrid models marketed under its Galaxy brand by 20,000 yuan ($2,762) to 25,000. Under the scrappage program, set to begin May 1 and end December 31, consumers will qualify for subsidies of up to 10,000 yuan when exchanging an old fuel-powered or electrified light vehicle for a new electrified vehicle. During the same 8-month period, consumers will be eligible for a subsidy of 7,000 yuan when scrapping an old fuel-powered light vehicle for a new one with engine displacements of up to 2.0 liters. In contrast to the slight contraction in the overall new-vehicle market, sales of electrified passenger vehicles, including full electric vehicles and plug-in hybrids, surged 37 percent to roughly 720,000 in April, according to the CADA’s estimates.

https://www.autonews.com/china/china-new-vehicle-sales-dip-15-april-trade-group-estimates