Crude tanker industry indicators amid falling oil prices (Part 5 of 16)
Auto sales link to shipping
China’s auto sales have a significant impact on the shipping industry. Auto sales drive oil demand, which is an important part of the shipping industry. With a slowing growth over the past few months, the industry and respective companies are likely to feel the impact.
Crude tankers such as Tsakos Energy Navigation Ltd. (TNP), Nordic American Tanker Ltd. (NAT), Teekay Tankers Ltd. (TNK), and Frontline Ltd. (FRO) as well as the Guggenheim Shipping ETF (SEA) are several that would feel the effect.
November auto sales
According to data from the China Association of Automobile Manufacturers (or CAAM), almost 2.09 million cars were sold in China in November, indicating a 2.3% increase year-over-year compared to a 2.8% increase in the last month. Both passenger and commercial car sales remained subdued.
Vehicle output stood at 2.16 million units in November. China sold 1.78 million passenger cars in November, up 4.7% year-on-year, while sales of commercial cars came in at 315,600, down 9.2% from the same period last year.
For the first 11 months of the year, auto sales stood at 21.1 million units, up 6.1% from the same period last year. But the growth marked a sharp slowdown from the rate seen a year earlier.
The share of domestic brands improved slightly, accounting for 40.9% of November sales. German and Japanese cars continued to lead the market, with 304,700 and 288,600 units sold during the month, respectively. On the other hand, foreign automakers have announced plans to increase production to win more sales in the world’s largest auto market.
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