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) manufacturers into global markets.
In terms of domestic sales, passenger car sales totaled approximately 2 million units, with 1.6 million units sold within China. This marked a 10% decrease from the previous year. On the other hand, total exports of passenger vehicles surged by more than 20% to 399,000 units.
A notable trend in 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 initiative aims to support the country’s goal of reducing carbon emissions and promoting the adoption of green technologies.
Despite the overall sluggish performance of the auto industry, sales of EVs saw a significant increase of nearly 30% in July, 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. Chinese automakers, on the other hand, have been gaining market share rapidly, accounting for two-thirds of all vehicle sales in July.
In terms of pricing, the majority of vehicles sold in China between January and July fell within the range of 100,000 yuan to 150,000 yuan (approximately $14,000 to $20,500). The largest share of EVs sold were priced between 150,000 yuan to 200,000 yuan ($20,500 to $28,000), reflecting the affordability and accessibility of electric vehicles in the Chinese market.
Leading Chinese automakers such as Chery Automobile, SAIC, and Geely continue to dominate the export market, with a focus on conventional fuel engine models. However, EV manufacturers like BYD and Tesla are quickly gaining traction. BYD exported 31,000 EVs and hybrids in July, while Tesla’s exports totaled 28,000 units.
In the first seven months of the year, BYD outpaced Tesla in terms of EV exports, with 2.38 million units compared to Tesla’s 1.76 million units. This highlights the competitive landscape of the EV market in China and the growing influence of domestic manufacturers in the global automotive industry.
According to customs figures, the majority of China’s auto exports this year were destined for Russia, with 478,000 Chinese-made vehicles imported in the first half of the year. Mexico and Brazil followed as the second and third largest importers, with 226,000 and 171,000 vehicles respectively. These figures underscore China’s position as a key player in the global auto market and its growing presence in international trade.