Islamabad, Oct 12: China car sales surge after subsidies
After five months of decline, China’s passenger vehicle sales increased 4.3% in September compared to the same month last year.
2.13 million cars were sold in September in the world largest auto market, up from 2.04 million the month before. According to the China Passenger Car Association sales rose 1.9% over 2023 levels in the first nine months of the current year.
Sales of electric and plug-in hybrid vehicles rose from 50.9% to 52.8% of total sales. For the third straight month, sales of battery-powered vehicles—including plug-in hybrids—in China exceeded those of gasoline-powered vehicles.
In September, 1.12 million electric and plug-in hybrid cars—also referred to as “new energy vehicles” by the Chinese industry association—were sold in China; in the first nine months of this year, sales had totaled 7.13 million.
Global EV sales have slowed this year as a result of manufacturers outside of China lowering their production goals.
However, China Car Sales have increased as a result of an enhanced package of national subsidies for buyers who trade in their older automobiles for electric vehicles (EVs) and more fuel-efficient models; this program has been compared to the 2009 “cash-for-clunkers” stimulus in the United States.
In China, Tesla sold more than 72,000 cars, a 66% year-over-year increase, during its greatest month of the year. The business has previously declared its quarterly worldwide delivery.
With around one-third of its sales coming from China, Tesla has introduced additional incentives, such as market-wide zero-percent financing.
Chinese EV manufacturers Xpeng, Li Auto, and BYD had September be their greatest month ever. Through the first eight months of sales, BYD, Geely, and Tesla were the top three Chinese manufacturers of new energy vehicles.
In July, the Chinese government declared that customers who trade in their old cars for electric vehicles would receive a subsidy of nearly $2,800. A fuel-efficient combustion car can receive a subsidy of somewhat more than $2,100.
1.1 million people had signed up to benefit from the subsidies as of the end of September.
The secretary-general of the CPCA, Cui Dongshu, stated on Saturday that he anticipates a robust fourth quarter for local government trade-in subsidies.
