Auto sales in China experienced a slight decline in July, with a 5% drop compared to the same period last year, according to the China Passenger Car Association. Despite this decrease, exports of vehicles saw a significant increase of about 20%, driven by the expansion of electric vehicle (EV) makers into global markets.
In terms of domestic sales, passenger car sales totaled around 2 million units, with approximately 1.6 million sold within China. This represented a 10% decline from the previous year. On the other hand, total exports of passenger vehicles surged by more than 20% to reach 399,000 units.
One of the key drivers of the Chinese auto market is the growing popularity of „new energy vehicles,“ which include electric and plug-in hybrid cars. More than half of all vehicles sold in July fell under this category, indicating a shift towards cleaner and more sustainable transportation options.
To stimulate demand for EVs, the Chinese government has introduced incentives to encourage consumers to trade in their older gas and diesel-fueled vehicles for electric ones. This move aims to accelerate the adoption of EVs and reduce the country’s carbon footprint.
Despite the overall sluggish performance of the auto industry, sales of EVs saw a notable increase of nearly 30% in July compared to the previous year, reaching approximately 991,000 units. Of this total, 887,000 units were sold domestically in China, while 103,000 units were exported to international markets.
Foreign automakers have faced challenges in the Chinese market, with sales either stagnating or declining due to intense price competition and market saturation. In contrast, Chinese automakers have been gaining market share rapidly, accounting for two-thirds of all vehicle sales in July.
The majority of vehicles sold in China between January and July were priced between 100,000 yuan to 150,000 yuan (approximately $14,000 to $20,500). EVs priced between 150,000 yuan to 200,000 yuan ($20,500 to $28,000) constituted the largest share of electric vehicle sales during this period.
Leading Chinese automakers such as Chery Automobile, SAIC, and Geely continue to export more vehicles, primarily conventional fuel engine models, compared to EV manufacturers like BYD and Tesla. However, the latter are rapidly gaining traction in the market, with BYD exporting 31,000 EVs and hybrids in July, while Tesla’s exports totaled 28,000 units.
In the first seven months of the year, BYD exported 2.38 million EVs, surpassing Tesla’s 1.76 million units. The majority of China’s auto exports were destined for Russia, with 478,000 Chinese-made vehicles imported in the first half of the year, predominantly featuring internal combustion engines. Mexico and Brazil followed as the second and third largest importers of Chinese vehicles, highlighting the country’s growing presence in the global automotive market.