China’s auto sector stumbles by 3% in May, outlook remains cautiously positive for full year

For the first time in 14 months, vehicles sales in China fell by 3% in May 2021, compared to the same period a year earlier, according to industry data released on Friday.

Data from China Association of Automobile Manufacturers (CAAM) showed overall sales China was 2.13 million vehicles in May. Between January to May, China sold 10.88 million vehicles, up by 36% from the same period a year earlier.

Although a global shortage in semiconductors and rising prices in raw material are increasingly having an impact on Chinese auto sales, CAAM remains cautiously positive about the sector’s outlook, said Chen Shihua, a senior official at CAAM.

CAAM expects overall sales in the country to grow at 6.5% in 2021.

Incidentally, sales of new energy vehicles (NEVs), maintained a strong momentum, with 217,000 units sold in the previous month. Tesla Inc sold 33,463 China-made electric cars in May.

Automakers including General Motors Co’s China joint venture, Geely, Honda Motor, and Geely reported lower sales in May.

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