New Market Research Report: Hong Kong Autos Report Q3 2013

From: Fast Market Research, Inc.
Published: Tue Aug 06 2013

Private passenger car sales for the first four months of the year rose 25% y-o-y, to 11,996 units. We are maintaining our 2013 sales forecast of 3% growth, to 36,756 units.

Commercial vehicle (CV) sales for the first four months of the year grew by 72%, to 2,182 units. We believe this surge in sales in the past few months was due to the incentive scheme for replacing Euro II diesel CVs with new CVs, which are less polluting. Given that this scheme is ending on June 30 2013, we do not believe sales will perform as well in H213.

However, the success of the 'cash for clunkers' programme initiated in 2013 for CVs is evident and we are therefore upgrading our 2013 CV sales growth forecast to 33.5%, to 6,000 units. This would then bring our total 2013 auto sales growth forecast to 6.4%, to 42,704 units.

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In 2012, vehicle sales grew by 2.2%, to 40,141 units. However, this low growth figure should not be of too much concern. Hong Kong's automotive market is mature and saturated even by global standards and the local government actively tries to limit car ownership in what is one of the world's most densely populated areas. The potential for rapid growth is limited and BMI expects sales to reach only 45,629 by the end of our forecast period in 2017. This indicates that growth is set to average around 2% over the coming years.

The overwhelmingly dominant part of Hong Kong's auto market will continue to be passenger vehicles. In 2012 passenger car sales totalled 35,685, which is just under 89% of all total vehicle sales in the city province. While commercial vehicle (CV) sales contracted by 1.4% in 2012 to 4,456 units, we expect CV sales to grow by 34% in 2013 to 5,948 units due to a new round of subsidies offered by the government to incentivise owners of old diesel CVs to replace them, in a bid to battle Hong Kong's worsening air pollution. We forecast the CV segment to enjoy annual average growth of 2.7% over the 2014-2017 period, to hit 6,620 units by 2017.

The E-Class from Mercedes-Benz proved to be Hong Kong's most popular vehicle in 2012, selling 2,327 units. These figures amply demonstrate the dominance of high-end cars in Hong Kong's car market, with three of the five best sellers being luxury models. Only Toyota Motor's Hiace, at 1,950 units and the Volkswagen Golf with 1,333 sales also topped the market, in second and third places respectively. However, the Hiace was the top selling model in April 2013.

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For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Vietnam Autos Report Q3 2013
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