Auto sales in China experienced a slight setback in July, with a 5% decline compared to the same period last year, according to the China Passenger Car Association. Despite this dip, exports of passenger vehicles saw a significant increase of over 20%, driven by the expansion of electric vehicle (EV) makers into global markets.
In total, sales of passenger cars reached approximately 2 million units, with 1.6 million sold domestically in China, marking a 10% decrease from the previous year. Notably, more than half of all vehicles sold were classified as „new energy vehicles,“ which include electric and plug-in hybrid models. This shift towards cleaner energy sources aligns with China’s efforts to reduce emissions and combat climate change.
To stimulate demand for EVs, the Chinese government has implemented incentives to encourage consumers to trade in their older gas and diesel-fueled vehicles for more environmentally friendly options. This initiative has contributed to the rise in sales of EVs, which saw a nearly 30% increase in July compared to the previous year, totaling around 991,000 units. Of this figure, 887,000 were sold within China, while 103,000 were exported to international markets.
Despite the overall decline in auto sales, Chinese automakers have been gaining market share rapidly, accounting for two-thirds of all vehicle sales in July. Sales of vehicles produced by Chinese companies increased by 10%, reflecting the fierce competition faced by foreign automakers in an oversaturated market.
The majority of vehicles sold in China between January and July fell within the price range of 100,000 yuan to 150,000 yuan (approximately $14,000 to $20,500). Among EVs, those priced between 150,000 yuan to 200,000 yuan ($20,500 to $28,000) were the most popular choice among consumers.
While traditional automakers like Chery Automobile, SAIC, and Geely continue to export more vehicles, including conventional fuel engine models, EV manufacturers such as BYD and Tesla are quickly gaining traction in the market. In July, BYD exported 31,000 EVs and hybrids, while Tesla’s exports totaled 28,000 units. Over 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 directed towards Russia, with 478,000 vehicles imported in the first half of the year, predominantly featuring internal combustion engines. Mexico and Brazil followed as the next largest importers of Chinese-made vehicles, highlighting the global reach of China’s automotive industry.
In conclusion, while auto sales in China faced challenges in July, the growth of EV sales and the increasing market share of Chinese automakers signal a shifting landscape in the automotive industry. With a continued focus on sustainability and innovation, China’s auto market is poised for further evolution in the coming years.