U.S. New Auto Sales Revenue Tops China By 39 Percent - aftermarketNews

U.S. New Auto Sales Revenue Tops China By 39 Percent

According to TrueCar, China's 19 percent unit volume advantage in 2014 was dwarfed by a richer U.S. product mix, based on MSRP analysis.

carparcSANTA MONICA, Calif. – TrueCar Inc., the negotiation-free car buying and selling mobile marketplace, found that the total market value for new vehicles sold in China, the world’s largest market by volume, trailed that of the U.S. by as much as $161 billion last year, based on a comparison of pricing data.

Sales in China were a record 19.7 million new autos in 2014, according to the China Association of Automobile Manufacturers, 19 percent more than the 16.5 million new cars and light trucks purchased by U.S. consumers. Yet, with an average new vehicle price equivalent to $20,805, based on a TrueCar analysis of manufacturer suggested retail prices (MSRP) for more than 750 models and trim levels, Chinese sales may have totaled $409.9 billion versus $570.9 billion in the U.S., where MSRP averaged $34,537 in 2014.

“While the growth of China’s new vehicle market over the past decade has been impressive, the total value of that market remains considerably lower than the U.S. and will remain so for some time,” said John Krafcik, president of TrueCar. “Vehicle prices will continue to rise, yet global automakers competing for China’s consumers must also continue to share half of everything they make in the region with domestic market partners.”

New vehicles sold by domestic Chinese brands had an average MSRP of just $15,706, while foreign makes commanded an average MSRP of about $32,278, based on TrueCar’s analysis of all models and trim levels listed on ChinaAutoWeb.com. China has led the U.S. in new vehicle sales every year since 2009.

Sales in that fast-growing market may reach a projected 21.1 million new units this year compared with an estimated 17 million sales in the

U.S. In contrast to the U.S., average transaction price (ATP) information that includes manufacturer incentives and discounts isn’t readily available for China.

On a total volume basis, including new and used autos, the U.S. remained a bigger market last year with a combined 53.5 million purchases, more than double the 25.7 million new and used vehicles sold in China, based on TrueCar analysis. The combined value of those U.S. sales, based on new vehicle MSRPs in 2014 and average transaction prices for used autos, was $1.18 trillion compared with $468.5 billion in China, TrueCar finds.

* China MSRP data from ChinaAutoWeb.com, average of all trims.

 

You May Also Like

Gilbarco Veeder-Root Announces Turnkey EV Charging Business

The recharging ecosystem is designed specifically for the fuel retail industry.

Gilbarco Veeder-Root has launched Konect, an electric vehicle recharging ecosystem for the fuel retail industry. Introduced at the UNITI expo, Konect offers a suite of EV charging hardware and software solutions for businesses looking to install their own EV charging infrastructure.

Konect provides support, including consultancy, installation, maintenance and customer service, the company said in a recent press release. It is a flexible, streamlined solution that allows customers to future-proof their facilities without distracting from their core business. The centerpiece of the solution is an EV charging system co-developed with global EV charging technology provider SK Signet Inc.

Automechanika Frankfurt 2024 Aims to Embrace Industry Change

The show will focus on sustainability, AI, automation and new talent recruitment in the global automotive industry.

Continental-automechanichka-1400
LKQ to Sell Poland’s Elit Polska to MEKO AB

Elit Polska is a Poland-based distributor of automotive parts, consumables and workshop equipment.

LKQ to Sell Poland’s Elit Polska to MEKO AB
India Auto Market: Transition from ICE to Smart Mobility

Bhatia discusses what is needed for India to emerge as a globally competitive manufacturing and export base, among other related topics.

India-Auto-Market-Transition-from-ICE-to-Smart-Mobility
MEMA Aftermarket Suppliers to Present at TAYSAD Conference

Philip Atkins will provide insights into the current state and future trends of the automotive and commercial vehicle aftermarket.

MEMA-Aftermarket-Suppliers-to-Present-at-TAYSAD-Conference

Other Posts

DGI, EVage Motors Partner on Electric Drive System in India

They will target the Asian EV market, offering far more efficient electric trucks, resulting in longer life and a reduced cost of ownership for fleet owners, the companies said.

REE Automotive Exhibiting at ACT Expo 2024

The company said it is expanding its full by-wire EV offering and will showcase its software-driven approach to EVs.

REE-Automotive-Exhibiting-at-ACT-Expo-2024
Nexus Digital N! Climate Day Focuses on Sustainability Solutions

Industry leaders unite to drive sustainable solutions across global supply chains, featuring key updates and expert discussions.

Environmental-Sustainability-generic
The Nearshoring Boom and Its Impact on Mexico’s Talent Landscape

Ruiz discusses how the rise in nearshoring opportunities has influenced employment trends in Mexico, among other topics.

JoseRuiz-The-Nearshoring-Boom-globalautoindustry.com_