September boost for growth in auto sales

China’s auto market is expected to post further growth in September, according to a report by the China Automobile Dealers Association.

September is a peak season for auto sales and they will be given a boost with the release of new models and the Beijing auto show from September 26 to October 5.

The association said demand had seen a moderate increase in August compared with July due to macro-economic factors and increasing consumer confidence.

A government policy to boost sales in rural areas stimulated consumption last month. Other factors included Autohome’s 818 online auto show as well as increasing demand due to the new school year.

The report noted that luxury car brands saw relatively good sales in August driven by upgrading and lower prices.

However, the association said car dealers needed to be cautious amid the COVID-19 pandemic. It said they should estimate actual demand based on real conditions, control inventory levels, improve network profitability, strengthen risk and capital management as well as control costs. At the same time, it is recommended they continue to focus on epidemic prevention and implement control measures.

The association's report covered most car dealers from the top 100 auto dealership groups in China.