Car Wholesales in China Jump 18%

Sales of passenger vehicles to dealers in China, led by strong demand for SUVs and crossover vehicles, surged 18% to 1.78 million vehicles in June, the China Assn. of Automobile Manufacturers reports.

It was the fastest growth rate in six months. Analysts note that car sales sagged last year in June-August when China’s stock market fell. They predict year-on-year growth rates will slow when autumn arrives.

June wholesales of Chinese brand passenger vehicles climbed by about 25% to 717,000 units. SUV/crossover sales surged 41% to 632,000 units, including a 62% jump to 347,000 domestically produced models. Sedan sales expanded 9% to 925,000 units.

CAAM says wholesales in the first half of 2016 climbed 9% to 11 million passenger vehicles. When commercial trucks and buses are included, volume in January-June sales grew 8% to 12.8 million units.

But a measure of dealer inventories compiled by the China Automobile Dealers Assn. also indicates a sharp rise in supplies of unsold vehicles. CADA’s index, which considers any ratio above 50% troublesome, jumped to 60% from 51% in May.