BEIJING – Data showed Friday that China’s car exports rose to a record high in April, while domestic sales fell 5.8% from a year earlier on intensifying price competition and consumer caution about spending money on gigantic cars. products in a period of uncertain economic recovery.
Car exports rose 38% year-on-year to 417,000 units in April, maintaining the robust momentum from the previous month, which saw a 39% raise in exports, the China Passenger Car Association (CPCA) said.
The EU’s ongoing anti-subsidy investigation into Chinese carmakers has disrupted and put pressure on vehicle exports to the bloc, but China is actively exploring South American, Australian and ASEAN markets for exports, said Cui Dongshu, secretary general of the association.
He said local automakers will have to make a choice between going abroad or failing in the face of intensifying competition in the domestic market.
According to CPCA data, sales of passenger cars in the world’s largest automotive market fell by 5.8% in April compared to the previous year to 1.55 million units and by 9.6% compared to March. Car sales increased by 5.7% in March compared to the previous year, and on a monthly basis they increased by 53%.
“The market slowdown was greater than expected while some automakers continued to struggle to maintain production, resulting in an raise in dealer inventories,” Cui said.
Although the share of sales of fresh electric vehicles has reached a fresh record, paving the way for the world’s largest car market to accelerate its green goal, sales of electric vehicles are still much slower than those of plug-in hybrid vehicles (PHEV).
NEVs accounted for 43.5% of total car sales, a record high for the month after reaching more than half of the level in the first half of April. China has set a target of 45% by 2027.
Electric vehicle sales rose to 12.1% in April from 10.5% in March, while PHEV sales increased 64.2% compared to a 75.4% raise in March. Electric vehicle sales were down 6.3% from March, while PHEV sales were down 4.7%.
The PHEV segment, which has been growing faster since 2022, is driven by the success of domestic giant BYD, which accounted for 57% of the company’s car sales in April.
Data from the association showed that China’s share of the global PHEV market rose to almost 70% in the first quarter.
Japanese automakers, pioneers of hybrid technology, are lagging behind, capturing just 1.9% of the global PHEV market in the first quarter.
Mediocre electric vehicle sales compared to rising expectations for an all-electric future underscore slowing demand in China despite a protracted price war that has attracted more than 40 brands.
To encourage wary consumers, China announced subsidies of up to 10,000 yuan ($1,380) each to replace cars, and additional automakers including Tesla and BYD began offering best-selling models with no down payment.
