Car sales in China, the world’s largest car market, hit 11.7 million vehicles in the first half of 2014, up 8.4% over last year, according to the China Association of Automobile Manufacturers. For light vehicles, sales rose 11.2% on the year to 9.6 million in the first half of 2014. General Motors reported record sales so far in 2014, selling more than 1.7 million units. “We anticipate sales remaining strong through the end of 2014, as more people — particularly outside China’s major cities — become first-time vehicle buyers,” GM China president Matt Tsien said.
The Wall Street Journal noted on July 9 that foreign automakers, as their business grows in the People’s Republic, are increasingly pushing the financing of vehicle purchases in an economy that is typically cash-heavy. At the end of March, outstanding loans issued by China’s 17 auto-financing companies stood at 266 billion yuan, or $42.9 billion, up 10% from December 2013, according to the China Banking Association. Analysts say that the push for financing is helping foreign vehicles gain market share in the country. As in the U.S., financing companies in China offer dealers incentives to push loans to customers.
