SAIC Motor Car Sales Surges In April As Industry Heads For Recovery
Chinese auto manufacturer SAIC Motor reported a rebound in its sales last month, a potentially good sign for the company's prospects in the coming quarters. The sales recovery is welcomed news for the automaker, which had reported a massive dip in its sales during the first quarter amid the spread of the coronavirus pandemic earlier in the year.
On Saturday, the Shanghai-based company revealed that it had sold more than 433,000 vehicles in April, a 0.5 percent increase compared to the same month last year. Around 413,000 vehicles out of the total were sold locally, a 1.3 percent year-on-year increase.
The figures reported for April are a stark contrast to the company's overall sales for the first three months of 2020. For its first quarter, SAIC Motor reported a steep 55.7 percent plunge in car sales to only 679,028 units when compared to the same period in 2019. If the trend in car sales will continue, SAIC Motor is expecting actual growth in sales and revenues for the second quarter and beyond.
The company attributed the increase in its sales numbers last month to the continued rollout of supporting policies by the Chinese government. The central government and local government units have continually devised new measures to help bolster the country's car industry and promote spending in an effort to revitalize the economy after months of continued decline.
SAIC Motor's assistant president, Cai Bi, had stated that apart from the government's industry supporting policies, Chinese automakers have also implemented innovative marketing and sales strategies to stimulate automobile consumption.
The company along with other automakers had taken advantage of emerging technologies and online platforms to offset the slowed demand during the months of restrictions and lockdowns. This included the use of live-streaming car sales and online promotions on popular social media platforms to reach customers who were quarantined at home.
SAIC Motor plans to continue with its high-tech strategy and supplement it with new promotions. The automaker announced that it will be launching a major sales promotion carnival in May and June, the traditional peak of car buying in China, to further boost consumption and to meet the pent-up demand of Chinese car buyers.
Given the promising figures reported by SAIC Motor and other automakers, the China Passenger Car Association expects a complete V-shaped recovery in the industry in the coming quarters. The association expects that the continued implementation of favorable policies by the central and local government along with the innovative promotions and programs offered by the carmakers should ensure the future sustainable development of the country's auto industry.