[ad_1]
China may be the biggest auto market in the world, but it is certainly not growing. The China Passenger Car Association (CPCA) reported that 19.29 million passenger cars were sold in the huge Asian country in 2020, down about 7% from the 2019 figure. This was the third annual decline. in a row from the peak of 23.8 million in 2017.
While the industry has been affected – as many have been – by the economic fallout from the coronavirus pandemic, the epidemic had mostly eased in China in the latter months of the year. As a result, the country’s GDP grew at decent rates in Q2 and Q3, after falling almost 7% in the first quarter.
Image source: Getty Images.
With the momentum expected to take the economic indicator higher in 2021, ACIPR forecasts a very different dynamic for 2021. “This year will see much stronger growth”, The Wall Street Journal quoted ACIPR Secretary General Cui Dongshu.
Certain top-down and bottom-up factors should contribute to such an increase. RECENTLY, the Chinese government has extended the subsidies it provides to buyers of ELECTRIC vehicles (EVs), with the aim of increasing their share of overall car sales.
At the same time, a determined disruptor Tesla Motors (NASDAQ: TSLA) This month, it entered the market with its locally produced Model Y SUVs.
Starting at 339,900 yuan ($ 52,438), they are cheaper than high-end internal combustion SUVs on the market such as the Audi Q5 and BMW X3. Tesla is not new to China, but the very attractive price of the Model Y and the cachet of its brand (not to mention that of the EVs) should translate into healthy sales, helping to boost the entire market.
Tesla’s share price rose 4.7% on Tuesday, which improved the S&P 500 flat on the day.
[ad_2]
Source link