China: Auto Sales Will Rise 7% to Top 20 Million

Wholesale deliveries of passenger and commercial vehicles in China, which increased 4% to 19.31 million units in 2012, will climb to a record-high 20.65 million units this year, the China Assn. of Automobile Manufacturers predicts.

Growth in the country's auto market last year was an improvement from its 3% gain in 2011 but remains far below its pace of 32% in 2010 and 46% in 2009. CAAM says last year's sales were dampened by a sluggish economy, a sharp drop in demand for Japanese vehicles and tighter limits on car registrations in traffic-clogged cities.

Commercial-vehicle volume which shrank 6% to 3.8 million units in 2012 will likely edge up 1% to 3.85 million units this year, according to the state-run group.

China's sales of cars and SUVs rose 9% to 15.5 million units last year. CAAM expects the country's strengthening economy to boost demand for passenger vehicles 8% to 16.80 million units in 2013, including a 26% jump for SUVs. Analysts says such sales also will be buoyed by an increasing focus on selling low-priced cars in China's interior and a gradual waning of antipathy toward Japanese brands.

Japanese carmakers reported annual sales declines in China in 2012, including Nissan (-5% to 1.2 million units), Toyota (-5% to 840,500 units) and Honda (-3% to 598,600 units).

Most other major foreign automakers also posted higher group volume in the country last year, including General Motors (+4% to 2.7 million units), Ford (+21% to 626,600 vehicles) and BMW (+40% to 326,400 units). Sales surged 25% to 2.2 million vehicles for Volkswagen's namesake car brand and 30% to 405,800 units for its Audi marque. Demand for Daimler's Mercedes-Benz and Smart car brands grew 4% to 206,200 units.

Chinese brands hiked sales 6% to 6.5 million units in 2012, CAAM says.