Market
Feb 15, 2017 ｜ by China Textile
China’s consumption market in November maintained a momentum of steady rise. The retail sales of national social consumer goods in November amounted to RMB3.1 trillion, up 10.8% year on year, hitting a new high of the year. The retail sales of national social consumer goods in January-November increased 10.4%, with 0.1 percentage point higher than that in the previous ten months. The retail sales of 5,000 retail enterprises monitored by MOFCOM grew up 4.9% year on year, with 0.3 percentage point higher than that of the previous month, rising for four months in a row.
The characteristics of consumption markets in November are listed as below:
Sales of online commodity increased. In January-November, the sales of online commodity rose by 25.7%, 0.4 percentage point higher than that of the previous ten months, taking up 12.5% of that of the national social consumer goods, rising 0.8 percentage point than that in January-October. According to the monitoring by MOFCOM, in November, the sales of online commodity grew up 25.6% year on year, with 0.3 percentage point higher than that of last month, 23.5, 18.8 and 18.5 percentage points higher than those of stores, supermarkets and shopping mall respectively.
Sales of automobiles speeded up. According to the statistics by China Association of Automobile Manufacturers, the sales volume of national passenger cars in November amounted to 2.59 million, up 10.5% month on month, and up 17.2% year on year. Among these, that of SUV amounted to 1.019 million, taking up 39.3% of that of passenger cars, with 1.1 percentage points higher than that of last month. According to National Bureau of Statistics, the sales of automobiles of enterprises above the designated size in November grew up 13.1% year on year, 4.4 percentage points higher than that of last month and 4.1 percentage points higher than that over the same period of last year. The sales of travel products have pulled the total sales of social consumer products with 1.6 percentage points, 0.6 percentage points higher over the same period of last year.
Sales of home appliance and communication equipment rose. Major manufacturers of home appliance promoted their products through e-commerce platforms while guiding consumers to interact with them in stores by channels of APP, We Chat Official Account and official online stores to provide good experience and jointly promote sales both online and offline. In November, sales of home appliance and communication equipment of enterprises above the designated size grew up 14.7% and 17.8% respectively year on year, with 6.8 and 6.1 percentage points higher than those in the previous months respectively.
Growth of farm products expanded. According to the monitoring by MOFCOM, the price index of national farm products in November grew up 1.7% month on month, up 3.7% year on year, 1.8 percentage points higher than that of last month, rising for three months in a row. The accumulative growth in January-November was 4.5%, equal to that in January-October, with 4.1 percentage points higher over the same period of last year. Since winter came, greenhouse vegetables have been the main source of vegetables. Moreover, affected by cold wave weather across the country, cost of production, storage and transport all increased, fresh vegetables saw seasonable rise. The average wholesale price of 30 kinds of vegetable monitored was RMB 4.45 per kilo, up 9.6% month on month, and up 17.4% year on year.
On December 29, the Ministry of Commerce held the regular press conference. The Spokesman Shen Danyang answered the hot and sensitive questions to the high concern of both domestic and overseas media
Question: According to the statistics of China Association of Automobile Manufacturers, 24.94 million cars were sold in China during the first 11 months, up by 14.1% year on year, surpassing the total of last year. Some analysts believe that China is on its way to be the first country to sell over 25 million cars in a year. What is MOFCOM’s take on the reasons for car sales growth this year and the prospect of the car market next year?
Answer: On the one hand, the rapid growth of auto sales has to do with macro factors such as the stable and growing Chinese economy and the increase of residential income and investment. On the other hand, it is also the result of the incentive policy to halve the sales tax on vehicles with 1.6-liter or smaller engines, as well as MOFCOM’s efforts to boost car sales and promote the sound and rapid development of car market. Since the beginning of this year, MOFCOM has done the following in this regard:
First, MOFCOM formulated the Administrative Measures for Automobile Sales and rolled out automobile parallel import pilots in a bid to break the single mode of car brand sale authorization, optimize market supply and cater to the diversified and multi-layered consumption needs. In the first 11 months of 2016, pilot companies parallel imported about 55,000 cars of over 140 models. Mid and high end import cars witnessed a notable price decline.
Second, at the proposal of MOFCOM, the State Council issued Several Opinions on the Facilitation of Used-Cars Transaction with a view to stimulating used car market and creating more market space for new car consumption. From January to November 2016, used cars transaction volume reached 9.271 million, a year-on-year increase of 10.4%.
Third, MOFCOM accelerated the phase-out of old cars. The verification and clearing of vehicle scrappage subsidy for 2015 was completed. A total of nearly 70,000 cars were scrapped through central government subsidies during the whole year. In the first 11 months of 2016, 1.569 million motor vehicles were recycled, up by 6.4% compared with that of the last year.
With regard to the prospect of car sales next year, we believe that as the rapid growth this year jacked up the base and the incentive policy for the sales tax on vehicles with 1.6-liter or smaller engines starts to wane, the sales growth will moderate next year. Based on the predictions of China Association of Automobile Manufacturers, the car sales will grow by 2-6% next year. In order to stabilize and expand car consumption and to ensure the smooth function of car market, MOFCOM will continue to innovate car sales management system, issue and implement Administrative Measures for Automobile Sales, and further facilitate used cars transaction in a bid to promoting the phase-out of old cars and expanding car consumption throughout the whole chain.
(Source: Ministry of Commerce of the People’s Republic of China)
