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AL CIRCLE

China’s production and sales of motorcycles increased 2.83% MoM & 8.09% YoY in June 2019

EDITED BY : 2MINS READ

According to the latest data from the China Association of Automobile Manufacturers (CAAM), production and sales of motorcycles in June improved across China both year-on-year, as well as month-on-month basis.

China's motorcycles sales and productions increase in June

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Domestic production of motorcycles in the above mentioned month came in at 1.48 million units, up 2.83 per cent from May 2019 and 8.09 per cent from June 2018. In May 2019, the production had dropped month-on-month by 0.64 per cent.

Sales climbed 4.34 per cent month-on-month in June and 6.74 per cent on the year to stand at 1.47 million units. In May 2019, sales were down by 1.32 per cent from the previous month.

With this, the total production and sales of motorcycles in the first half of 2019 in China totalled 7.81 million units and 7.77 million units, respectively.

Chinese consumers who are purchasing electric motorcycles and light electric motorcycles are exempted from purchase taxes since July 1.

Red Mud report

The exemption of purchase tax reduces the buying cost for consumers by hundreds of yuan. This in turn, is expected to spur motorcycle sales across the market and therefore the production and also the demand for downstream aluminium. Also, the increase in electric motorcycles production is expected to enhance of generation of secondary aluminium domestically.

This comes as a boost to market sentiment after the new national standards for electric motorcycles took effect earlier this year.

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