China witnessed a remarkable surge in car exports to a record high in April, according to data released by the China Passenger Car Association (CPCA) on Friday. The surge comes as domestic sales experienced a decline of 5.8% from the previous year, reflecting intense price competition and consumer caution amidst an uncertain economic recovery.
Car exports soared by 38% year-on-year, reaching 417,000 units in April, maintaining strong momentum from the preceding month which recorded a 39% growth in exports. Despite ongoing challenges, including an anti-subsidy investigation by the EU into Chinese automakers, China has actively explored markets in South America, Australia, and ASEAN countries for exports, according to Cui Dongshu, the secretary-general of the association.
However, the domestic market presents its own set of challenges, with passenger vehicle sales in China, the world’s largest auto market, declining by 5.8% year-on-year to 1.55 million units in April. This decline follows a 5.7% increase in sales in March, highlighting the unpredictability of consumer demand and market conditions.
While the share of new energy vehicle (NEV) sales reached a new high, accounting for 43.5% of total car sales, the growth rate of electric vehicle (EV) sales slowed compared to plug-in hybrids (PHEVs). NEVs have become increasingly popular, aligning with China’s ambitious green goals, but EV sales still lag behind PHEVs.
China’s dominance in the global PHEV market continued to expand, with its share rising to nearly 70% in the first quarter, as per association data. In contrast, Japanese automakers, traditionally known for pioneering hybrid technologies, captured only 1.9% of the global PHEV market in the same period, reflecting a shifting landscape in the automotive industry.
As China navigates through both domestic and international challenges in the automotive sector, the focus remains on sustaining growth while adapting to evolving market dynamics.
Source:Reuters
