Global auto market in May: Europe and the United States continue to pick up China's rare decline

In May, the global car market was half sunny and half hazy. The auto market in Europe and the United States continued to pick up, with sales growing steadily, with the UK showing the most outstanding performance, with sales soaring sevenfold. By contrast, the recovery in the Asian market is slowing; Chinese car production and sales have both declined due to chip shortages; South Korean car production is also under pressure due to lack of cores, while domestic demand has been hit by a surge in novel coronavirus infection.

China: both car production and sales have declined due to the shortage of chips

According to the latest production and sales data of the China Association of Automobile Manufacturers (CAA), in May, China's automobile production and sales were 2.04 million and 2.128 million respectively, down 8.7 per cent and 5.5 per cent from the previous month, and 6.8 per cent and 3.1 per cent respectively from a year earlier. However, compared with the same period in 2019, production and sales in May increased by 10.3 per cent and 11.1 per cent respectively compared with the same period in 2019.

From the perspective of specific data, automobile production and sales decreased in May compared with the same period last year, and the decline of commercial vehicles was significantly higher than that of passenger vehicles. According to the analysis of the China Automobile Association, the large decline in commercial vehicle sales is mainly due to the switching of "National VI" standards, while the decline in passenger car market sales is due to the supply side, because of the shortage of chips. the production pace of both self-owned brands and foreign brands has slowed down.

In the first five months of this year, China's automobile production and sales completed 10.626 million and 10.875 million respectively, up 36.4 per cent and 36.6 per cent respectively over the same period last year; compared with the same period in 2019, production and sales increased by 3.6 per cent and 5.8 per cent respectively.

Us: sales are up 40%, but inventories are at an all-time low

Retail demand for US cars continued to rebound strongly in May as the US economy continued to recover from the epidemic and government incentives stimulated consumer demand.

Most of the car companies that publish monthly US sales figures have increased by more than 40 per cent compared with the same period last year, in a sign of the general strength of the market. However, overall US car sales in May are unknown because some other car companies no longer publish monthly US sales figures. Us light vehicle sales grew by about 40 per cent year-on-year in the month, with 42 per cent growth forecast by Adam Jonas, an analyst at Morgan Stanley, according to analysts.

According to Jonas's forecast, the seasonally adjusted annual sales rate of (SAAR) in the United States was 17.1 million in May, that is, at that month's sales rate, US light vehicle sales this year will reach 17.1 million.

Despite strong demand, many carmakers have been forced to idle assembly plants because of a shortage of microchips, leading to a sharp drop in new car inventories, creating a hidden danger for the US auto industry's sales in the coming months.

Japan: sales rose 46.3% year-on-year, with Toyota accounting for eight of the top 10 best-selling models

In May, Japanese car sales rose 46.3 per cent to 319318 units from a year earlier, according to the Japan Automobile Dealers Association and the Japan Light Motor vehicles and Motorcycle Association.

In that month, the top 10 Japanese brands by sales were all local brands, with Toyota, Suzuki and Daihatsu as the three best-selling brands, with a total market share of 50%. Mercedes-Benz is the best-selling foreign brand, ranking 11th in sales, behind local luxury brand Lexus. South Korean brands have not yet entered the Japanese market, and Hyundai has sold only one.

In terms of best-selling models, eight of the top 10 best-selling models are Toyota products, of which Yaris ranked first, with sales of 16660 vehicles, up 60.4% from a year earlier. Nissan Note and Honda Freed occupy the remaining two seats.

In the first five months of this year, cumulative new car sales in Japan rose 12.8 per cent from a year earlier to 2098955.

Germany: new car sales up 37%, electric cars contribute significantly

High sales of plug-in hybrids and pure electric vehicles boosted overall new car sales in the country in May, according to data released by KBA, Germany's federal motor transport agency. Sales of pure electric passenger cars in Germany were about 26800, up 380% from a year earlier, while sales of plug-in hybrid vehicles were about 27200, up 300% from a year earlier, KBA said.

Overall new car sales in Germany reached 230635 in May, up 37% from a year earlier, partly because of a low base in the same period last year. In May 2020, due to the pandemic, new car sales in Germany fell by nearly half compared with May 2019.

In terms of electric models, gasoline models accounted for 37.7% of total sales, up 1.1% from the same period last year; diesel models accounted for 22.3%, down 3.3% from the same period last year; and the market shares of plug-in hybrid models and pure electric models were 11.8% and 11.6%, respectively.

In the first five months of this year, cumulative new car sales in Germany rose 13 per cent year-on-year to 1.12 million.

Brazil: sales double year-on-year sales are expected to grow by 15% for the whole year

Compared with May 2020, new car sales in Brazil in May increased by 203.93 per cent to 188678, including 45977 commercial vehicles, an increase of 154.68 per cent, and 142701 passenger cars, an increase of 223.31 per cent.

Trend of car sales in Brazil from 2008 to 2021 (Photo: countryeconomy.com)

In terms of production, Brazil produced 981500 cars that month, up 55 per cent from a year earlier, but well below the 1.24 million in May 2019. The Brazilian Association of Automobile Manufacturers predicts that car sales in Brazil this year will increase by 15 per cent year-on-year, and production will increase by 25 per cent.

UK: sales increase nearly sevenfold compared with the same period last year

In May, the number of new passenger car registrations in the UK reached 156737, up 674 per cent from a year earlier, in part because all UK car dealerships were closed because of the epidemic last May, and fleet demand from business customers also contributed to overall sales, according to (SMMT), an association of British automakers and dealers. Despite strong year-on-year growth, sales are still down 14.7% from May 2019 and 13.2% from the 10-year average for May.

Mike Hawes, chief executive of SMMT, said: "as car dealers reopen stores, the economic outlook has become clearer, and new car sales in May were satisfactory. Increased business confidence is driving economic recovery, and as the economy recovers with epidemic support measures, that confidence needs to be maintained and eventually translated into private consumer demand. "

SMMT expects new car sales in the UK to be around 1.86 million this year.

Russia: sales jump 134% chip shortage or curb growth

A total of 147378 new passenger vehicles and light commercial vehicles were sold in Russia in May, up 133.8 per cent from the same period last year, reflecting the gradual recovery of growth in the car market after the pandemic, according to (AEB), an European enterprise association.

In that month, the most popular Russian car brand was still domestic Lada, with sales of 38284 vehicles, followed by Kia and Hyundai, with 18818 and 16261 respectively. Chinese brand Harvard entered the 10th place on the list, with sales of 3167 vehicles, an increase of 324% over last year. Chery also performed well, with sales up almost nine-fold to 2990 vehicles. Geely ranks third among Chinese brands with sales of 2001 vehicles.

In the first five months of this year, new car sales in Russia rose 39% to 663312. However, given the global chip shortage, AEB is cautious about the development of the Russian car market in the coming months, with new car sales for most Russian brands expected to decline in the summer months. AEB added that sales growth was expected to be higher in June than in May, given that car sales were severely affected by the pandemic in June last year, but that year-on-year sales were expected to be more "realistic" from July.

Italy: sales are up 43% year-on-year, still 28% lower than the pre-epidemic level

New car sales in Italy rose 43 per cent to 142730 in May compared with the same period in 2020, thanks to the gradual lifting of blockades and travel restrictions imposed by the country to fight the coronavirus, according to the Italian Ministry of Infrastructure and Transport. However, sales are still 28 per cent lower than they were before the pandemic in May 2019.

In terms of sales performance, Stellantis has 39.4 per cent of the Italian car market, with an increase in sales for all its brands with the exception of Alfa Romeo; Volkswagen has 17.5 per cent of the market; and Renault has 7.2 per cent.

In terms of power type, the market share of pure electric vehicles is 3.6%, plug-in hybrid vehicles is 5.4%, full-hybrid light hybrid vehicles occupy 28% market share, diesel vehicles account for 23.4% market share, and gasoline vehicles market share is 31%.

In the first five months of this year, cumulative new car sales in Italy reached 735125, an increase of 63 per cent over the same period in 2020. Dataforce predicts that car sales in the market will grow by 7.7% to 1.49 million units in 2021.

France: the blockade of the epidemic has been lifted, and new car sales have soared by 46%.

After the blockade of the epidemic was lifted, the number of new car registrations in France increased by 46% in May compared with the same period last year.

According to CCFA, a French auto industry group, there were 19 sales days in May, with a total of 141041 new cars sold. Despite a year-on-year increase, it is still down 27% from 193948 in the same period in 2019.

In terms of the performance of the automobile group, the sales of several brands increased by 50% in the same month, with Volkswagen Group having the highest increase of 70%, of which the Volkswagen brand had the highest increase of 75%. Sales at the Stellantis group rose 42 per cent, with Fiat leading the way at 57 per cent. Renault's sales are up 46%. Among luxury brands, BMW brand sales are up 50%, Mercedes-Benz up 28%, and Volvo car sales are up 47%. Among Asian car companies, Hyundai sales are up 55%, Toyota sales are up 27%, Nissan is down 14%, and Kia is up 28%.

Cumulative car sales in France this year rose 50 per cent year-on-year to 723257 units in the year to May, CCFA said.

South Korea: sales drop 15% year-on-year due to lack of core and epidemic situation

South Korean car production continued to be affected by chip shortages in May, while domestic car demand fell sharply due to a surge in novel coronavirus infection in the country.

Domestic car sales in South Korea fell 15 per cent to 124145 units in May 2021, compared with 146130 in the same period last year, according to separate figures released by the country's five major carmakers. However, the figure does not include sales of some South Korean small commercial vehicle manufacturers, as well as sales of some imported cars.

Sales of all carmakers fell in south Korea, with market leader Hyundai down 12 per cent to 62056 and Kia down 6 per cent to 47901. Sales of smaller brands fell even more, with GM's South Korean sales down more than 23%, Renault Samsung's sales down more than 56%, and Ssangyong's sales down nearly 35%.

In the first five months of this year, total domestic car sales in South Korea were 618323, down less than 1 per cent from a year earlier. The South Korean government said it would extend the car sales tax credit until the end of the year to support the car market.

India: the second wave of the epidemic hit, sales plunged 64% month-on-month

Car retail sales data released by the Association of Automobile Dealers of India show that in May 2021, retail car sales in India reached 103267 units, an increase of 208.6% over the same period last year, but because the same period last year was during the blocking period of the epidemic in India, the sales base was quite low. Therefore, the reference for the same period is not great. Sales fell 66.8% compared with May 2019 and 63.9% month-on-month compared with April 20121.

In response to the sales performance in May, the Indian Automobile Dealers Association said, "the second wave of the epidemic has hit the whole country hard, not only in urban areas, but also in rural areas." As a result, several Indian states imposed a blockade in May, resulting in a sharp drop in new car sales. "

In the first five months of this year, cumulative retail car sales in India reached 1361282, up 29.6% from a year earlier and down 21.4% from the same period in 2019.

Spain: sales are up 178% year-on-year, still 24% below pre-epidemic level

According to ANFAC, a Spanish auto industry group, car sales in the country were 95403 in May, up 178 per cent from 34338 badly hit by the pandemic in the same period last year. However, sales are still 24 per cent lower than they were before the pandemic in May 2019.

During the month, sales of most car brands rose sharply in Spain, with Volkswagen's Seattle brand leading the way with a growth rate of 350%. In terms of power type, pure electric vehicles account for 1.9%, plug-in hybrids account for 4.7%, gasoline-powered vehicles account for 49.1%, and diesel-powered vehicles account for 20.2%.

In the first five months of this year, Spanish car sales totaled 360057, up 40 per cent from a year earlier, but still 36 per cent lower than in the same period in 2019.