China's vehicle market shows robust Apr growth; sales rebound after 21 months

Singapore — China's vehicle output and sales in April were 2.102 million and 2.07 million units respectively, up 46.6% and 43.5% on the month, and 2.3% and 4.4% higher than a year earlier, data released by the China Association of Automobile Manufacturers (CAAM) Monday showed, marking the first year-on-year growth in 2020.

April's sales growth ended 21 months of falls.

Over January-April, vehicle output and sales totaled 5.596 million and 5.761 million units, down 33.4% and 31.1% on the year, respectively. Nevertheless, the drops were less steep than in January-March.

Similarly, April output and sales volumes of new energy vehicles rose 60% and 36% from March, but dropped 22.1% and 26.5% on year respectively, to 80,000 and 72,000 units.

Output and sales of NEVs over January-April accounted for about 3.7% and 3.6% of the total, S&P Global Platts calculations showed.

Flats steelmakers' margins were supported in the meantime as Platts data showed the HRC margin increased in April reaching $18.58/mt as of April 30, compared with minus $11.56/mt April 1.

As of May 11, the HRC spot market price in Shanghai was Yuan 3,400/mt ($480/mt), up Yuan 140 from a month earlier, according to Platts assessments.

CAAM suggested that the domestic market keep track of the pandemic situation outside China and make preparations to mitigate any potential, negative impact the coronavirus might have on the motor industry.

Chinese domestic macro-economy recovery still needs time, and a shutdown of overseas factories might well affect domestic auto parts supply.