Car sales in April totalled 1.65 million units, 54.5% higher from a year earlier when COVID-19 lockdowns disrupted productions and sales, the China Passenger Car Association (CPCA) said on Tuesday.
In the first four months of 2023, vehicle sales were down 1.4% year-on-year to 5.98 million units, it added. Sales of new energy vehicles (NEVs), which include pure battery electric cars and plug-in hybrids, skid 3.6% on a monthly basis in April and accounted for 32% of total car sales in the month, CPCA data showed.
BYD Co Ltd sat atop the segment with 37% market share while Tesla Inc had a 7.6% share.
China's crowded auto market is getting even more congested with nearly 300 models displayed at the Shanghai auto show in April, 172 of which were NEVs, according to Ways Consulting.
After more than 40 auto brands this year joined a price war
started by Tesla and slashed prices on their best-selling
models, more consumers are choosing to delay purchases in
anticipation of bigger discounts on the cars, CPCA said in
previous notes.
The U.S. EV giant has since reversed course, raising prices
in markets including China in May.
The price increase by Tesla would help drive consumers away
from a wait-and-see sentiment, thus stabilising the overall
market, Cui Dongshu, secretary general of CPCA, told a media
briefing on Tuesday.
China's post-COVID economic recovery has mostly
benefited spending on services like restaurants and travel,
while sales of big ticket items like cars and smartphones have
continued to slump.
A tepid property market recovery and an unexpected
contraction in factory activity is also pointing to a shaky
economic outlook, casting clouds over the strength of the
post-COVID rebound and potentially dampening consumer spending.
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Small rise in passenger car sales in April Slight dip in share of NEVs sold in April ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by
Jamie Freed and Christina Fincher)
