BEIJING (Reuters) – Chinese car exports hit a record high in April, data showed on Friday, while domestic sales fell 5.8% year-on-year, impacted by increased price competition and cautious consumption facing an uncertain economic recovery.
Car exports jumped 38 percent year-on-year to 417,000 units in April, continuing the momentum of the previous month which saw export growth of 39 percent, the China Passenger Car Association (CPCA) said.
A European Union anti-subsidy investigation targeting Chinese manufacturers has impacted vehicle exports to the bloc, however, China has aggressively invested in South American, Australian and Association of Asian Nations markets. Southeast (Asean) to compensate, said Cui Dongshu, secretary general of the association.
He added that local automakers would have to make a choice between going abroad or losing sales, as competition in the domestic market intensifies.
Sales of passenger vehicles in China, the world’s largest automobile market, fell 5.8% in April year-on-year, to 1.55 million units, and 9.6% compared to March, according to the CPCA. In contrast, March saw an annual increase of 5.7% and a monthly jump of 53%.
“The sluggish market was worse than expected, as some automakers struggled to continue production, leading to increased inventory at dealerships,” Cui Dongshu said.
While the sales share of new energy vehicles (NEVs) has reached a new high, paving the way for the world’s largest auto market to accelerate its green goal, EV sales lag significantly behind those of plug-in hybrid vehicles ( PHEV).
NEVs made up 43.5% of total automobile sales, a record monthly peak, even exceeding 50% during the first half of April. China targets 45% NEV in total sales by 2027
Electric vehicle sales grew 12.1% in April compared to a 10.5% rise in March, while plug-in hybrid vehicles saw growth of 64.2%, up from 75.4% in the month previous. However, compared to March, EV sales fell by 6.3%, and PHEV sales by 4.7%.
The PHEV segment, dynamic since 2022, is driving the success of BYD, a national auto giant, representing 57% of its April sales.
China’s share of the global PHEV market reached nearly 70% in the first quarter, according to Association data.
(Reporting by Qiaoyi Li and Brenda Goh; Dimitri Rhodes, editing by Kate Entringer)
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