China experienced record sales of passenger vehicles in November, according to new figures published on Tuesday (7th December).

More than 1,280,000 cars, multi-purpose vehicles, sports utility vehicles and mini-vans were sold during the month, representing a year-on-year rise of 27 per cent and a 10.5 per cent increase from October.

The China Passenger Car Association also claimed that passenger vehicle sales in the first 11 months of the year reached 11,849,386, which was 31 per cent higher than for the same period in 2009.

Rao Da, Secretary General of the organisation, predicted that the world's largest auto market will "easily" reach its full-year sales target of 17.5 million units.

"Although the Guangzhou Asian Games to some extent affected car purchases in the South China market in November, the rising sales in Beijing, and other big cities, are due to concerns that local governments may be considering curbing car purchases through license plate control," he told China Daily.

"And sales will be much higher in December as the Chinese government's policies, including tax reduction and subsidies, will expire at the end of the year."

Meanwhile, in the US, industry-wide light vehicle sales ran at an annualised rate of 12.3 million in November to match last month's effort, which was the best since the 'cash for clunkers' scheme in 2009.

Autodata Corporation revealed that most of the major automakers reported improved sales, although the figures were generally lower than analysts' estimates.

General Motors saw sales rise by 11 per cent to 168,739, compared to a 13 per cent prediction by TrueCar.com, while Ford was expected to post a 21 per cent leap but achieved a 20 per cent jump to 147,338.

Chrysler, the remaining remember of the so-called Detroit 'Big Three', experienced a boost of 17 per cent to 74,152, despite five analysts' forecasts averaging out at 26 per cent.

However, Jeremy Anwyl, Chief Executive of Edmunds.com, an auto shopping research site based in California, warned that the encouraging figures should be treated with caution.

"It's not like happy days are here again - it's one more plodding step down the road in the right direction," he said in an interview with Bloomberg.

Toyota, which is the world's largest automaker, was the only one of the seven top-selling manufacturers in the US to report a decline, with sales slipping by 3.3 per cent on an unadjusted basis.

South Korea's Hyundai enjoyed the largest sales improvement, registering a rise of 45 per cent to 40,723 units, largely due to greater demand for its Sonata sedans and Genesis luxury cars.

The other Japanese automakers operating in the country, Nissan and Honda, posted sales increases of 27 per cent and 21 per cent respectively.

James Bell, an industry analyst at Kelley Blue Book, explained that Toyota's struggles can be linked to a raft of new models from its rivals and its well-publicised wave of recalls.

"It's a twofold issue for Toyota: the competition has come out with great products just as they were coming out of the recall impact," he told the news provider.

"[Toyota] took a blow in terms of public perception because of the recalls and it has given people a chance to stand back and take a look at the Sonata, the Altima, the Chevy Cruze."

Despite Hyundai's strong performance in the US, the Seoul-based manufacturer saw sales in its domestic market slump by 13 per cent in November.

The company has been badly affected by a prolonged strike by temporary workers at its Ulsan factory, where sub-compacts such as the Verna and the new Accent are produced.

Hyundai posted an overall sales rise of 1.4 per cent to 314,569, while Kia, South Korea's second-largest automaker, witnessed a 33 per cent boost to a record 222,116 units.

Elsewhere, almost all of India's automakers recorded improvements in total vehicle sales for November.

Maruti Suzuki registered an increase of 28 per cent to 112,554 units - which was its second six-figure total in a row - with local sales surging by 34 per cent to 102,503 units.

TVS Motors saw sales jump by 29 per cent on a year-on-year basis to 157,041 vehicles, while Mahindra & Mahindra reported a leap of 18 per cent to 26,666 units.

In Japan, sales fell by 30.7 per cent to 203,246 units, excluding 660cc mini vehicles, to mark the largest ever decline in November, despite an extra working day in the month compared to last year.

Toyota and Honda posted decreases of 35 per cent and 38 per cent respectively as automakers continue to be hit by the government's subsidies for some fuel-efficient models coming to an end in September.

"There's no sense that sales have hit a bottom," Michiro Saito, General Manager at the Japan Automobile Dealers Association, which compiled the figures, told Reuters.

Moving to Europe, where austerity measures and economic worries are impacting on consumer confidence, the conclusion of scrapping incentives was mainly responsible for a major dent in November auto sales figures.

The Society of Motor Manufacturers and Traders (SMMT) revealed that new car registrations in the UK declined by 11.5 per cent on a year-on-year basis to 139,875.

However, Paul Everitt, Chief Executive of the SMMT, explained that the group still expects full-year sales to reach 2.03 million units, representing a two per cent rise from the 2009 total.

"New car registrations fell by less than expected in November with demand from the fleet sector helping to offset the market rebalancing following the end of the scrappage incentive scheme," he said.

"Registrations are expected to fall next month, but demand may benefit from motorists looking to avoid the January VAT rise."

Spanish carmakers' association ANFAC revealed that sales declined by 25.5 per cent year-on-year during the month, largely due to a bonus scheme and a VAT rise occurring in July.

"Getting consumer confidence back, reducing the unemployment rate and a return to a more normal credit situation are fundamental factors to returning the Spanish market to levels more in line with the economic development of the country," read a statement from the organisation.

Finally, in France, auto sales fell by 10.8 per cent in November, which was lower than had been expected, according to industry association CCFA.

A trimmed scrappage incentive scheme of €500 is still in place across the country, with firms such as Peugeot Citroen and Renault also providing enticing money-back offers to their customers.

Flavien Neuvy, Head of the Automobile Industry Research Department at consumer credit company Cetelem, explained that buyers are capitalising on the imminent end to the initiative.

He also noted in an interview with Reuters that France could witness 2.2 million registrations in 2010, after posting a figure of 2,023,410 for the first 11 months of the year.

"Drivers are saying to themselves, 'At the end of December it's finished; we have to hurry to order a new car'," he told the news provider.

Sources:



China: Passenger vehicle sales figures soar (08/12/10)



GM, Ford, Chrysler U.S. Sales Rise as Demand for SUVs, Pickup Trucks Gains (01/12/10)



Toyota Bucks U.S. Growth as Honda, Nissan, Hyundai Sales Rise (02/12/10)



Hyundai Motor November sales flat, hit by strike (01/12/10)



Auto Blog: No Brakes for India's Car Makers (01/12/10)



Maruti, TVS Motor Sales Rise on Higher Demand (01/12/10)



Toyota Leads Third Straight Drop in Japan's Sales (01/12/10)



Japan, Europe November car sales fall (01/12/10)



New car registrations down 11.5 pct yy in Nov - SMMT (06/12/10)

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