Local vehicle sales nearly halve in Q1

The total value of retail sales in the city registered a decline of 11.2 per cent year-on-year to MOP14.7 billion (US$1.84 billion) for the first three months of this year, of which the sale of vehicles nearly halved compared to one year ago.
According to the latest official data released yesterday by the Statistics and Census Services (DSEC), retail sales of motor vehicles amounted to only some MOP470 million for the first quarter, a plunge of 48.4 per cent year-on-year compared to MOP910 million in the first quarter of 2015.
In addition, the sales value of motorcycles, parts and accessories recorded a notable decrease of 44.3 per cent in the period, as well, amounting to MOP48 million, compared to MOP87 million in the same period one year ago.
During the first three months of the year, the total volume of retail sales posted a decline of 8.7 per cent year-on-year according to the DSEC. In particular, the sales volume of motor vehicles and motorcycles, parts and accessories again plunged by 50.6 per cent and 46.5 per cent year-on-year, respectively.
The significant decreases in both the sales value and the sales volume of vehicles followed the government’s hike in the motor vehicle tax last December, which raised the average tax rate of newly imported automobiles to 40 to 72 per cent depending upon the imported price, whilst that on motorcycles and scooters increased from 24 to 50 per cent.
Luxury goods sales down
Meanwhile, the sales value of watches, clocks and jewellery fell 18.3 per cent year-on-year to MOP3 billion in the three months. The sales value of such products accounted for 20.8 per cent of the total retail sales in the period.
In addition, the sales value of food in department stores was down 9.6 per cent year-on-year to MOP2.2 billion, accounting for 15.2 per cent of the total. However, increases were recorded in the sales value of Chinese food products and that of cosmetics and sanitary articles, which rose by 11.1 per cent and 8.4 per cent year-on-year, amounting to MOP221 million and MOP609 million, respectively.
In terms of sales volume, that of footwear decreased by 15.1 per cent year-on-year in the quarter, whilst that of watches, clocks and jewellery dropped by some 12.3 per cent year-on-year. By contrast, the sales volume of cosmetics & sanitary articles grew by 8.7 per cent year-on-year, while that of Chinese food products and adults’ clothing increased 8.4 per cent and 8.1 per cent, respectively.
Worsening business expected
According to the DSEC, half of its surveyed retailers expected that their business would worsen in the second quarter of this year compared to the first, whilst some 32.3 per cent anticipate business will remain stable and only some 16.9 per cent anticipate an upcoming improvement.
Furthermore, nearly 60 per cent of these interviewees forecast that the total sales volume would decrease year-on-year for the second quarter of this year, whilst only 13.3 per cent are confident in an increase.
Some 66.7 per cent of the surveyed retailers foresee retail prices remaining stable in the second quarter compared to one year ago, whilst some 23.2 per cent expect a decrease.