Passenger car sales wilt under July heat
Print Edition
China’s passenger car market maintained its double-digit year-on-year growth momentum last month but ended up with languid sales due to the sweltering summer — traditionally a low season for car shopping in the country like the Spring Festival that fell in February this year.
Following a 12.3 percent increase in June, deliveries of sedans, sport-utility vehicles, multi-purpose vehicles and minivans rose 14.9 percent from a year earlier to 1.19 million units in July, which was 7.6 percent down on a monthly basis, according to the China Passenger Car Association.
Rao Da, secretary-general of the association, said the market performance was below expectations as car sales withered under record-high temperatures in many cities.
Though the market cool-down may last for another half a month until the start of a new peak season that comes with better weather, this month may still record a more than 10 percent sales increase amid a new wave of auto releases and sales campaigns, Rao predicted.
But with China’s new car warranty regulation — the first official protection for car buyers in the country — set to take effect in October, would-be buyers may still prefer to take a wait-and-watch approach.
Only cars bought after October 1 are eligible for the consumer warranty rights under the new rules, which include seeking replacement of cars with serious faults that cannot be repaired in the first two years or 50,000 kilometers of ownership, and asking for a refund under the time frame of 60 days or 3,000 kilometers if serious quality problems are detected.
Only by announcing their warranty policies ahead of the mandatory date can carmakers avoid sales losses in the preceding two months of August and September, Rao suggested.
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