By In July, China experienced a decline in vehicle sales due to the high base set a year earlier and weak consumer confidence. However, exports remained strong despite this setback.
According to the China Passenger Car Association, retail sales of passenger cars in the world’s largest auto market dropped by 2.3% to 1.77 million vehicles last month. This decline was expected considering the high base of sales from the previous year.
Compared to the previous month, sales in July saw a 6.3% drop, which is typical during this low season for car sales.
On the positive side, exports in July saw a significant increase of 63% compared to the previous year, resulting in a year-to-date growth of 81%.
The retail sales of new-energy cars, including electric and plug-in hybrids, saw a growth rate of 31.9% in July. This acceleration follows a 25.2% increase in June.
In contrast, sales of major Chinese-foreign joint-venture brands experienced a significant decline of 28% compared to the previous year, allowing domestic automakers to gain market share.
One notable company, Tesla, delivered 64,285 cars from its Shanghai plant in July.
Looking ahead, the China Passenger Car Association predicts that high oil prices will continue to drive demand for new-energy vehicles. Additionally, cooling property prices are expected to contribute to increased spending on automobiles in general.
To stimulate activity, Beijing has initiated a nationwide campaign to promote car purchases. Despite this effort, consumer confidence remains low due to ongoing economic uncertainty.
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