New automobile sales in Beijing fell 2.29 percent during this first half of the year, Beijing Business Today reported today, citing statistics from the Beijing Yayuncun Automobile Trade Market Center. The growth rate is 10.65 percent less than the national average.
The continuing restrictions on new vehicle registrations and limitations on the number of vehicles that can be brought in from other areas have both been attributed as major factors limiting new car sales this year. Tighter restrictions on license plate registrations has lowered new car sales by as much as 45.83 percent. At the same time, tougher regulations on sales of used vehicles, such as mandating that used vehicles only be allowed to be driven in their area of purchase, have caused used vehicle sales to fall dramatically, leading many owners thinking of selling their vehicle to finance a new one to change their minds.
Yan Jinghui, deputy general manager of the Yayuncun Automobile Market, explains: "Typically speaking, the fourth quarter is when dealerships have to make a major push to complete their annual sales goals. However, with the [current policies] and the decreasing sales of used cars, the margin [for potential growth] in the latter half of the year will shrink considerably."
However, at the same time that the market as a whole declines, new government policies to promote sales of new energy vehicles is causing consumers to shift their attention. Many analysts forecast that the new energy vehicle segment may be the only high point of Beijing's automobile market in the latter half of the year.
According to statistics from the China Association of Automobile Manufacturers, respective totals of 20,692 and 20,477 new energy automobiles were sold in China over the first half of this year. Both of those numbers are over double their respective figures from the first half of last year and have exceeded total volumes for the whole year of 2013. Pure electric vehicle production and sales volumes were specifically noteworthy, totaling 12,185 vehicles and 11,777 vehicles respectively. While a lot of this growth is due to how low volumes were to begin with, analysts emphasize that 2014 is marking the turning point for new energy vehicles' position in the overall automobile market.
This growth has been further encouraged by a series of favorable government policies. Earlier this month, the State Council decided that certain eligible new energy vehicles, including pure electrics and hybrid electric plug-in vehicles, purchased before the end of 2017 will be exempt from automobile purchasing taxes. The Beijing Municipal Commission of Housing and Urban-Rural Development, in association with other departments, will begin installing charging posts aside parking spots and in parking garages throughout the city.
Many are optimistic of the prospects of new energy vehicle sales rapidly growing in the near future. Wang Shuili, director of marketing of BAIC BJEV, commented that the lack of proper charging infrastructure has been a major limiting factor for new energy vehicle sales in the past. He excepts this change with the implementation of policies targeted at new energy vehicle sales. He comments: "During a new energy vehicle owner event we held this June, we accepted 880 new orders, showing that the consumers are actively interested in the market for new energy vehicles. We have already made the appropriate preparations."
