China’s April car sales swing to contraction despite NEV milestone
2024.05.10 05:04
BEIJING (Reuters) – China’s car sales fell 5.8% in April from a year earlier, industry data showed on Friday, as a ferocious price war and incentives failed to shake off consumers’ caution about spending on big items during a shaky economic recovery.
While the share of new energy vehicle sales scaled a new high, paving the way for the world’s largest auto market to fast-track its green goal, sales of electric vehicles are still far slower than those of plug-in hybrids (PHEVs).
Sales of passenger vehicles were 1.55 million units in April, down 9.6% from March, the China Passenger Car Association (CPCA) said. Car sales had risen 5.7% in March on the year, and jumped 53% on the month.
NEVs accounted for 43.5% of total car sales, a record full-month high after hitting a milestone of more than half in the first half of April. China has set a target of 45% by 2027.
EV sales quickened to 12.1% in April from 10.5% in March, while PHEV sales jumped 64.2% against a rise of 75.4% in March.EV sales had contracted 6.3% from March while PHEV sales dropped 4.7%.
The PHEV segment, which has grown faster since 2022, drives the success of domestic giant BYD (SZ:), making up 57% of the company’s car sales in April.
China’s share of the global PHEV market rose to nearly 70% in the first quarter, Association data showed.
Japanese automakers who have pioneered hybrid technologies lagged behind, capturing just 1.9% of the global PHEV market in the first quarter.
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Mediocre EV sales versus growing bets on an all-electric future underscore slowing demand in China despite a protracted price war that has drawn in more than 40 brands.
To woo cautious consumers, China has announced subsidies of up to 10,000 yuan ($1,380) each for auto trade-ins and more automakers, including Tesla (NASDAQ:) and BYD, have started offering best-selling models with no down payments.
China’s car exports, a major source of profit amid stiffer competition, jumped 38% to a new monthly record of 417,000 in April, slightly slower than the March rate of 39%.
($1=7.2241 renminbi)
