BEIJING, Sept 9 (Askume) – China’s passenger car sales fell for a fifth consecutive month in August, industry data showed on Monday, but sales of all-electric and plug-in hybrid models benefited from car-swapping subsidies for drivers rose.
Data from the China Passenger Car Association (CPCA) showed sales fell 1.1% from the same period last year to 1.92 million units. This compares with a 3.1% decline in July.
However, sales of new energy vehicles soared 43.2%, accounting for 53.5% of total car sales, hitting a record high. Local electric car champion BYD (002594.SZ) set a sales record, and U.S. rival Tesla (TSLA.O) also set a sales record. Sales set sales record .
Automobile exports rose 24% after rising 20% in July.
The association said last week’s figures reflected weak consumer confidence, with trade volumes on first-time car purchases falling.
Drivers who buy new energy vehicles with gasoline-powered cars can enjoy cash subsidies of up to 20,000 yuan ($2,823), while drivers who buy gasoline-powered cars with small engine replacements can enjoy cash subsidies of up to 15,000 yuan.
Domestic EV giants Nio (9866.HK) and Xpeng Motors (9868.HK) launched lower-priced brands earlier this year due to a slowdown in consumer spending.
“More than 80% of applicants for trade-in subsidies choose to buy new energy vehicles,” said Cui Dongshu, secretary general of the Passenger Car Association.
Data from the Passenger Car Association shows that despite the recent decline, car sales will still grow by 1.6% in the first eight months of 2024.
Cui said he expects government incentives to be beneficial to new energy vehicle sales and sales to remain at a positive level throughout the year.
Sales of new energy vehicles are expected to reach 50% of domestic car sales this year before surpassing that milestone in 2025, Cui said.
Rising sales of electric cars and plug-in hybrids have done little to help dealers cope with the challenge of falling prices.
Data from the China Automobile Dealers Association shows that more than half of dealers suffered losses from January to June, with the loss ratio rising 7.3 percentage points year-on-year.
The second-largest loss-making dealer, China Grand Automobile, was delisted from the Shanghai Stock Exchange in August after its share price fell below par for 20 consecutive days.
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