Auto Sales In China Reverse Trend In June

Preliminary numbers indicate auto sales in China rose in June, reversing course for the first time in a year.  Sales rose a reported 4.9% in June.  As previously discussed on the blog, sales in China have been in a downward trend since last summer.

Analysts attribute the rise to aggressive discounting by dealers in China.  One of the underlying reasons for the discounts is an attempt by dealers to clear their lots of cars that do not meet new stricter emissions standards.  The rules, which were originally slated to take effect in July 2020, have been pulled forward to this month in at least 15 cities, creating a rush to comply with the emissions standards.  Dealers lamented that buyers did not want to buy the vehicles certified to the prior emissions standards, unsure of how long they would be able to drive the vehicles.  However, the steep discounting must have worked, given the surge in vehicle sales in June.  Reports indicated discounts as big as 50% to entice