Despite an overall decline in June car sales in China compared to the same period last year, sales of New Energy Vehicles (NEVs) continued to rise. The total number of passenger cars sold in China fell by 6.9% year-on-year, recording 1,779,000 units.
According to the China Passenger Car Association (CPCA) on the 8th, passenger car sales in June decreased for the third consecutive month, following a 2.2% drop in May and a 5.8% decrease in April. However, compared to the previous month’s sales of 1,725,000 units, there was a 3.13% increase.
Sales of regular passenger cars in June decreased by 12.2% year-on-year, recording 789,000 units. Multi-Purpose Vehicles (MPVs) decreased by 5.5%, recording 84,000 units, and SUVs remained at 894,000 units, a 1.5% decrease.
In contrast, NEV sales surged by 28.6%, reaching 856,000 units. This marked a 6.4% increase compared to the previous month. May’s NEV sales stood at 805,000 units.
Electric vehicle (EV) sales increased by 9.9%, recording 493,000 units, while Plug-in Hybrid Vehicles (PHEVs) surged by 67.2%, reaching 363,000 units.
NEV sales accounted for 48.1% of total car sales, setting a new monthly record.
Passenger car exports in June totaled 378,000 units, a 28% increase year-on-year, but remained flat compared to the previous month.
NEV exports increased by 12.3% but decreased by 15.2% compared to the previous month, accounting for 21% of total exports.
Export momentum might weaken as the European Union (EU) began imposing provisional additional tariffs of up to 37.6% on Chinese EVs from the 5th.
From January to June, cumulative passenger car sales reached 9,933,000 units, a 2.9% increase year-on-year.
Cumulative NEV sales from the same period were 4,111,000 units, a 33.1% surge compared to the same period in 2023.
The cumulative number of passenger cars exported from January to June was 2,247,000 units, a 33% increase compared to the same period last year.
Despite the Chinese authorities offering subsidies to replace used cars with new ones, consumer consumption has not significantly increased. Reflecting the sluggish demand, the June vehicle inventory caution index from the China Automobile Dealers Association reached 62.3%, an increase of 8.3 percentage points compared to the same month of the previous year.
