China June 2016: Market up 18%, next wave of Chinese SUVs arrives

Launched in April, the Changan CX70 sells 10.058 units in June. 

* See the Top 70 All China-made brands and Top 393 All models by clicking on the title *

A year ago, the Chinese light vehicle market was going through its first monthly year-on-year decline in over 6 years. June 2016 data is a lot more reassuring with deliveries up a whopping 18% year-on-year to 1.784.100 units. Crossovers and SUvs once again are the engine of growth in China at +41% to 632.300 units, with MPVs up 35% to 170.400 and sedans up 9% to 925.100, whereas microvans continue to sink into oblivion at -38% to 56.300 sales according to the China Association of Automobile Manufacturers. These strong results are showing that the tax cut on cars with engines of or lower than 1.6L implemented last October has been effective in rebooting market growth.

A March launch, the Geely Boyue found 8.142 new homes in June.

The Volkswagen brand manages to outpace the overall Chinese market with sales up a stunning 20% to 219.431. It is followed by Buick up 14% to 97.266, Hyundai up a whopping 62% to 97.208, Honda up 14% to 95.788 and Nissan up 20% to 88.580 whereas Toyota pays the absence of small crossover in its lineup with a 8% drop to 88.432. Rare brands in decline also included Citroen (-4%), Chevrolet (-16%), Peugeot (-19%) and Ford (-20%). Note the above figures do not include imports. Changan (+22%), Beijing Auto (+127%) and Haval (+39%) are the only Chinese brands inside the overall Top 10, followed by Geely at #11 (+37%), Dongfeng at #13 (+53%) and Wuling at #15 (+17%). Notice Baojun up 44%, GAC Trumpchi up 121%, Haima up 67% and Roewe up 89%. In the luxury race, Audi is up 7% to remain the favourite at 51.008 sales, BMW Group (including Mini) is up 13% to 45.300 and Mercedes shoots up 21% to 39.462 sales. Group-wise, General Motors is up 11% to 273.563 sales but far below the Volkswagen Group.

Launched in March, the Yuan is BYD’s 2nd most popular vehicle in China this month. 

Thanks to sales up a stunning 62% year-on-year to 43.585, the VW Lavida reclaims the top spot in the models ranking for the third time in the past 5 months, knocking the Wuling Hongguang down to #2 and 41.956 units (+16%). The Haval H6 soars 60% to 37.547 deliveries and stays put in third place ahead of the Nissan Sylphy (+33%), VW Jetta (+72%) and Buick Excelle GT (+59%). The VW Sagitar (+70%) and Santana (+39%) are the other two Volkswagen sedans posting exuberant gains in the Top 10, just as the Tiguan drops 28% awaiting the new generation.

The BAIC Senova X35 ranks inside the overall Top 100 for its 2nd month in market. 

The GAC Trumpchi GS4 (#10) remains the #2 best-selling SUV in the country above the Buick Envision (+48%) and Baojun 560. Yet one of the main trends in the SUV segment this month is foreign entries catching up: the Nissan X-Trail ranks 6th with 15.920 sales, the Honda CR-V is up 12% at #7, the Honda Vezel and XR-V continue to sparkle, adding up to 27.461 sales (+31%) and the new model propels the Hyundai Tucson 8-fold to 13.203 sales. Meanwhile the Chinese SUVs that had gobbled up such an impressive amount of sales in the past 18 months seem to be taking a small break: along with the Baojun 560 levelling down, the Changan CS35 (-9%), JAC Refine S3 (-14%), Changan CS75 (-45%) all lose significant ground.

The Dongfeng Fengguang 580 is up 97% on its starting month to #101 in June.

But the succession is ready: 11 of the 13 nameplates launched in the past 3 months that are already present in the Top 145 are Chinese SUVs – the theme of all illustrations in this article and the one thing to remember about China this month. The only two foreigners are the Hyundai Elantra Lingdong (#32) and Kia KX5 (#68). The Changan CX70, first appearing in February but truly launching in April, breaks into the Top 50 with 10.058 sales, the Geely Boyue is up to #75 with 8.142, the BYD Yuan at #95 with 6.161, BAIC Senova X35 at #100 with 5.977 (+99% on its inaugural May score), the Dongfeng Fengguang 580 at #101 with 5.952 (+97%), FAW Xenia R7 at #116 with 4.987 (+27%), Lifan Myway at #118 with 4.864 (+133%), Geely Emgrand GS at #124 with 4.600 (+64%), Changhe Q25 at #131 with 4.222 and BAIC Weiwang S50 at #132 with 4.132. Finally, the Haval H7 continues to climb up at 3.594, now the brand’s third best-seller below the H6 and H2 (10.089) but above the H1 (3.504) and H5 (1.501).

An April launch, the Lifan Myway is already the brand’s best-seller in China at #118.

The Geely Emgrand EC7 (+44%) is once again the most popular Chinese sedan but the Chery Arrizo 5 continues to flex its muscles, lodging a 2nd consecutive 5-digit sales month at 10.722 and hurting the Changan Eado at #3 (-30%). A rare event, the BMW 5 Series is the #1 luxury vehicle in the country with 14.344 sales, outselling such mass market nameplates as the VW Golf (13.733) and Polo (13.126) and distancing the Mercedes C-Class L (10.417), Audi A4L (10.256), Audi Q5 (9.924) and Audi A6L (9.273). In the MPV aisle, the Dongfeng Fengguang 330/370 is up 90%, the BAIC Weiwang M30 is up 77% and the Changan Oushang posts yet another 5-digit month at 10.819 sales.

Previous month: China May 2016: Price cuts lift market up 11%, Wuling Hongguang back to #1

One year ago: China June 2015: First monthly year-on-year decline in over 6 years

Full June 2016 Top 70 All China-made brands and Top 393 All models below.