Auto sales in China see decline of 5 percent last month yr/yr


(MENAFN) In July, auto sales in China experienced a decline of 5 percent compared to the previous year, according to the China Association of Automobile Manufacturers. Despite this overall drop, exports of vehicles surged by about 20 percent, driven by a notable increase in global market expansion by electric vehicle (EV) manufacturers. Passenger car sales within China amounted to approximately 2 million units, with domestic sales down by 10 percent to around 1.6 million units. However, total exports of passenger vehicles rose significantly, reaching 399,000 units.

A significant portion of the vehicles sold were classified as "new energy vehicles," which include electric and plug-in hybrid models. Chinese automakers have increasingly focused on exporting vehicles due to sluggish domestic demand and recent tariff increases imposed by the U.S. and European Union. These tariffs were introduced in response to concerns that Beijing's government subsidies provide Chinese automakers with an unfair competitive edge.

In reaction to these tariffs, China’s Commerce Ministry announced that it had submitted the provisional tariffs to the World Trade Organization's dispute settlement mechanism. The ministry criticized the European Union's preliminary ruling as lacking a solid factual and legal basis, arguing that it violates WTO rules and disrupts global efforts to address climate change. The ministry called for the EU to rectify its actions to maintain stable economic and trade relations between China and the EU, as well as to support the electric vehicle industry chain.

To stimulate demand and address slowing economic growth while promoting cleaner transportation, China has expanded incentives for consumers to trade in older gasoline and diesel vehicles for EVs. Although overall car sales have remained weak, sales of EVs saw a nearly 30 percent increase in July from the previous year, reaching approximately 991,000 units. Out of these, 887,000 were sold within China, and 103,000 were exported. Meanwhile, sales of foreign automakers in China have stagnated or decreased this year, reflecting the intense price competition in a saturated market.

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