A total of 1.43 million automobiles have been sold in China in 2014, up 21.6 percent from the previous year. Although the figure represents strong growth, a number of manufacturers are encountering record inventory highs. This factor, coupled with increasingly strict legislation and other factors, have led many to forecast growth of around just 10 percent for the import automobile market in 2015. Growth is expected to decrease over the year.
Inventory levels in November and December reached 4.2 points, the highest level since 2012. At the same time, profits for Chinese dealerships are also on the fall, with only around 30 percent of dealers reporting profits in 2014, compared to approximately 70 percent in 2010. According to statistics from the China Automobile Dealers Association, 41.48 percent of dealers posted profits of between 5 percent and negative five percent, while a further 9.87 of dealers suffered serious net deficits. A mere 20 percent of dealerships reported that they were satisfied in their performances last year.
Nine of the best-selling imported automobiles last year were SUVs, showing the importance of the market segment in the country. SUVs made up 63.3 percent of all imported automobiles sold over the course of the year. However, analysts believe that growth for the imported SUV market will also slow down this year.
