(Yicai Global) Nov. 10 -- China's passenger car sales rose for the fourth straight month in October amid economic recovery with an expected lasting momentum, according to an industry association.

Sales climbed 8 percent to 2 million units from a year ago due to the better-than-expected macroeconomic recovery and a rebound in exports to the US and Europe, according to data that the China Passenger Car Association released yesterday. Moreover, a low comparison point boosted the increase as the country applied tighter emission standards in some regions in July 2019.

China’s auto market will continue to get better in November because the epidemic control situation is stable and the economy is rebounding, while consumer confidence and residents' purchasing power is restored, said Cui Dongshu, CPCA's secretary-general.

The strongest growth should take place in the new energy vehicles segment. Till December, the NEV market will continue to rise rapidly, based on a month-to-month comparison, because Beijing added 20,000 units to its license plate quota and Shanghai has recently eased its time limits for out-of-town vehicles on elevated highways, Cui added.

The wholesale volume of NEVs exceeded 144,000 units last month, more than doubling from a year ago. SAIC-GM-Wuling Automobile led the market with more than 29,700 units sold, followed by BYD with almost 22,400 units. SAIC Motor was No. 3 and Tesla China No. 4. NEV startups Nio, Li Auto, WM Motor Technology, and Xiaopeng Motors Technology were also performing well.

Looking at the broader market, Hongqi, Chang’an, and Chery were some of the popular domestic brands, as their combined sales rose by 6 percent. Moreover, posh brands were striving. Luxury car sales jumped 30 percent last month from a year earlier, thanks to a strong upgrade demand, and particularly in the NEV sector, the report added.

However, some Chinese carmakers underperformed and that may continue going forward, the CPCA said, without giving names. Yicai Global has been one of the media outlets to report on the latest developments in the bankruptcy procedures of carmakers such as Zotye Automobile and Lifan Industry this fall.

In the first 10 months of this year, China's car sales fell 10.2 percent to 14.9 million units because of the impacts of the Covid-19 pandemic early this year.

Editor: Emmi Laine