Auto sales in China experienced a slight setback in July, with a 5% decline compared to the previous year, according to the China Passenger Car Association. However, there was a notable increase of about 20% in exports, driven by the expansion of electric vehicle manufacturers into global markets.
Passenger car sales in China totaled approximately 2 million units, with 1.6 million sold domestically, marking a 10% decrease from the previous year. The total exports of passenger vehicles surged by over 20% to 399,000 units. Notably, more than half of all vehicles sold were classified as 'new energy vehicles,' including electric and plug-in hybrid models.
To stimulate demand, the Chinese government has introduced incentives to encourage consumers to replace older gas and diesel vehicles with electric vehicles. Despite the overall sluggish performance of the auto market, electric vehicle sales saw a significant uptick of nearly 30% in July, reaching around 991,000 units. Of this total, 887,000 were sold within China, while 103,000 were exported.
Foreign automakers have faced challenges this year, with sales either stagnating or declining due to intense price competition in a saturated market. Chinese automakers, on the other hand, have been gaining market share rapidly, accounting for two-thirds of all vehicle sales in July. Sales of Chinese vehicles increased by 10% during the period.
The majority of vehicles sold in China between January and July were priced in the range of 100,000 yuan to 150,000 yuan (approximately $14,000 to $20,500). Among electric vehicles, those priced between 150,000 yuan and 200,000 yuan ($20,500 to $28,000) were the most popular.
While companies like Chery Automobile, SAIC, and Geely continue to export more vehicles, particularly conventional fuel engine models, than electric vehicle manufacturers like BYD and Tesla, the latter are rapidly gaining traction in the market. In July, BYD exported 31,000 EVs and hybrids, while Tesla's exports totaled 28,000.
During the first seven months of the year, BYD exported 2.38 million EVs, surpassing Tesla's 1.76 million, according to the report. The majority of China's auto exports this year were directed to Russia, with 478,000 Chinese-made vehicles imported in the first half of the year, predominantly featuring internal combustion engines. Mexico and Brazil followed as the second and third largest importers, receiving 226,000 and 171,000 vehicles, respectively.
