China and India in the Driver's Seat, Car-Wise

China and India - 'Chindia' - established themselves as automobile market leaders by posting a staggering 36.5% and 14% growth, respectively, in auto sales during June. Government incentives such as sales tax and interest rate cuts as well as subsidies to trade in older cars are the principal factors behind the growth.

Passenger car sales in China totaled 872,900 units, outpacing the U.S. by 13,053 units during June.

Passenger car sales in India were up 8% during the month, a significant improvement from a 4% decrease in May. Apart from Government incentives, new models such as Maruti Suzuki Ritz, Honda Jazz and Fiat Grande Punto pushed sales growth in the country.

The results will surely attract global automakers toward these countries to drive revenues in a gloomy auto industry.

During June, the U.S. auto industry posted a sales decline of 28%. Industry sales fell short of the targeted annual rate of 10 million units by 310,000 units. Ford (F) reported a 10.9% sales decline. Sales at General Motors (GMGMQ.PK), the largest carmaker by volume, tumbled 33.6%. However, sales at Ford and General Motors surged 14% and 38%, respectively, in the first half of the year in China.

The European auto market is yet to revive. Both the leading automakers of Germany – BMW and Daimler (DAI) – reported declines of 13% and 7%, respectively, in car sales during June. Nevertheless, the automakers’ sales were strong in China during the month.

We continue to recommend DAI and F as Holds.

Comments

[a. palmer jr.:]

It would be nice if they started the Mercedes Benz at a little cheaper price. Then sales would go thru the roof! Can't see paying a starting price of over $48000 for an e-class.

Jul 11 11:58 AM

[a. palmer jr.:]

Can you imagine a Mercedes the size of a Mazda Miata with a four cylinder engine and a reasonable price? They probably couldn't make enough of them for the demand.

Jul 11 12:00 PM

[TinyTim:]

Actually, this is the first China car I've seen that didn't look like trash.
Notice no door.
www.autobloggreen.com/...

It's a 3 passenger gokart (center driver position).
Like the sign says, they're keeping it open for full electric.

Jul 11 05:59 PM

[TinyTim:]

Actually, this is the first China car I've seen that didn't look like trash.
Notice no door.
www.autobloggreen.com/...

It's a 3 passenger gokart (center driver position).
Like the sign says, they're keeping it open for full electric.

Jul 11 06:09 PM

[jhenry:]

For working trucks the rule is not based on the fuel efficieny. As long as it is manufactured before 2001 they all qualify
but cannot be older than 25 years old.


Jhenry
Blogger
cashforclunkersfacts.info
www.cashforclunkersfac...

Jul 14 04:49 AM

[Jalal Alamgir:]

I agree with your analysis. China and India are definitely in the driver's seat, and the fallout from the US auto industry meltdown will only help them.

Jalal Alamgir, Ph.D.
localandglobal.wordpre.../

Jul 23 12:20 PM