Car Sales Expected To Increase In May

Sales of passenger vehicles in China are forecasted to reach 1.7 million units in May, up 6.6% m/m and 27.7% y/y, according to a note from the China Car Passenger Federation. Analysts noted attendance at auto shows was strong and manufacturers had continued to offer large discounts throughout the month. The government’s decision to postpone the ban on selling high emission cars to the end of the year had taken pressure off distributors and allowed the market to stabilise, the federation said. Analysts noted customer demand cooled down towards the end of the month, following a strong start.