China's Vehicle Sales from January to June Drop 6.6% Compared to Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Due to lockdowns caused by COVID-19, China's automobile sales in the first half of this year decreased by more than 6% compared to the previous year.

According to statistics from the China Association of Automobile Manufacturers on the 12th, China's automobile sales from January to June this year totaled 12.057 million units, down 6.6% from the previous year. June sales recorded 2.502 million units, a 23.8% increase compared to the same period last year, marking a turnaround to growth after four months.

From March, due to lockdowns in major economic cities such as Shanghai where COVID-19 cases surged, automobile sales in China continued to decline from March to May. Sales of commercial vehicles such as trucks and buses were sluggish. Passenger car sales increased by 3.4% compared to the previous year, but commercial vehicle sales plummeted by 41.2%.

The increase last month is believed to be due not only to the easing of lockdowns in major cities like Shanghai and Beijing but also to automobile consumption promotion measures such as exemption from acquisition tax for small internal combustion engine vehicles, temporary subsidies for electric vehicles by region, and expanded issuance of license plates.

On the other hand, electric vehicle sales surged and showed strong performance. Sales of eco-friendly vehicles including pure electric vehicles, hybrid electric vehicles, and hydrogen electric vehicles reached 2.6 million units in the first half, jumping 120% compared to the same period last year. As a result, the market share of electric vehicles in the first half also rose to 21.6%.

This content was produced with the assistance of AI translation services.