Intl brands gain most as car sales rise

Automobile sales in China grew at their fastest pace in five months in August, with European carmakers making considerable headway in a robust market that posted growth of more than 10 percent.

Last month, more than 1.22 million passenger cars were sold in China, including sedans, multi-purpose vehicles, sport utility vehicles, and minivans, according to figures released by the China Association of Automobile Manufacturers.

The numbers represent a year-on-year growth of 11 percent.

Cumulative vehicle sales during the eight months reached 9.95 million, a year-on-year increase of nearly 8 percent.

Sales of commercial vehicles, however, fell by 8.9 percent to 2.5 million, largely due to the slowdown in the Chinese economy and the cancellation of many major projects since last year.

SUV sales continued to be the mainstay of the market in China, notching up a 30 percent rise in sales to 1.27 million units.

FAW-Volkswagen, German auto major Volkswagen Co's passenger car joint venture in China, took pole position in August sales with 114,700 car deliveries, followed by SAIC-GM and SAIC-Volkswagen with 109,800 units and 87,900 units.

The top 10 auto manufacturers accounted for more than 70 percent of the total market share, with 593,000 deliveries, according to the CAM figures.

Volkswagen Group delivered 83,406 cars in August, up by 15.5 percent year-on-year. By the end of August, the company had sold more than 636,840 cars, 12 percent more than the previous year, while its Chinese joint venture partners FAW-Volkswagen and SAIC-Volkswagen were the leaders in the overall Chinese auto market.

Figures released by Mercedes-Benz show that the brand sold 134,810 cars during the eight months in China, up by 9 percent year-on-year.

"With more B-class models expected to be introduced in China this year, Mercedes-Benz hopes to maintain the good sales momentum," said Klaus Maier, chief executive officer and president of Mercedes-Benz China.

BMW also remained high on the perch among European brands, as well as in the premium car market. With total deliveries of over 25,400 units (with around 23,500 BMWs and 1,900 Minis), BMW had its best August ever in the China. The sales numbers represent a 37.5 percent growth over 2011.

Audi AG, another major premium brand of Volkswagen group, sold 34,800 cars in China, a year-on-year increase of 24 percent, while sales during the eight months rose by 33 percent to 261,548 units.

With the government gradually implementing stricter environmental standards, European auto brands have started to adjust their product lines in China.

Audi has been the spearhead in introducing new energy vehicles. Earlier this year, it introduced a model Q5 hybrid quattro, which claims to save up to 23 percent in energy compared with gasoline-powered vehicles.

Yao Chunde, a professor from State Key Laboratory of Engines at Tianjin University, said it is now better for auto majors to incorporate new energy features into high-end models, as the target customers in the segment are not so sensitive to price.

"Customers looking for vehicles priced higher than 200,000 yuan ($32,000) tend to be more environmentally conscious and they value renowned international brands more," Yao said.