- Passenger car sales in China fell by 1.1% in August to 1.92 million units, marking the fifth straight monthly decline.
- Sales of electric and plug-in hybrid vehicles (NEVs) rose by 43.2%, reaching a record 53.5% share of total sales.
- Chinese drivers can receive subsidies of up to ¥20,000 (about €2,543) for replacing gasoline-powered cars with NEVs.
Beijing, 9 September (FinanceFlashNews) – The Chinese passenger car market contracted for the fifth consecutive month in August, with overall sales dropping 1.1% compared to the same period last year, totaling 1.92 million vehicles. This follows a 3.1% decline in July, according to the China Passenger Car Association (CPCA), reported by Reuters.
Despite the overall slump, sales of New Energy Vehicles (NEVs), which include fully electric cars and plug-in hybrids, surged by 43.2%. These vehicles accounted for a record 53.5% of total car sales, boosted by government subsidies aimed at encouraging drivers to replace traditional gasoline vehicles with NEVs.
Chinese drivers can receive subsidies of up to ¥20,000 (approximately €2,543) for switching from gasoline cars to electric or plug-in hybrid models. However, while demand for NEVs has grown, many car dealers are grappling with falling prices. Over 50% of dealerships recorded losses in the first six months of the year, with their proportion of losses increasing by 7.3 percentage points compared to the same period in 2023.
In response to weaker consumer spending, local electric car manufacturers such as Nio and Xpeng have introduced lower-priced brands earlier this year.
Keywords: China car sales, NEVs, electric vehicles, CPCA, subsidies
