The Chinese utility vehicle market grew in 2020
- While the Chinese passenger car (PC) market has fallen by 18.4% over the first seven months of 2020, due to the coronavirus crisis which has led to several weeks of lockdown, with however a clear improvement observed since May last (+ 7.2% in May, + 2.1% in June, + 8.9% in July), the Chinese market for utility vehicles (UV) grew by 14.4% over the same period. From April, the Chinese UV market exceeded its pre-crisis levels (+ 31.6% in April, + 47.9% in May, + 63.2% in June, +59, 4% in July).
- This significant growth can be explained by the fact that the 2018 and 2019 years suffered from economic tensions between China and the United States which had caused a drop in world trade and a drop in growth in China itself. This growth decline in China had significantly reduced China's demand for utility vehicles. We are therefore now witnessing a sharp increase in demand, supported in particular by public investment.
- With 650,000 more units registered between April and July 2020, the UV market in China reached a level never reached during this period. However, if these this trend reflects an anticipations of purchases supported by public investments, it is possible to see a backfire effect in the last 2 months of 2020 or at the beginning of 2021.
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