China's Push for 'Iguhwanxin'... May New Energy Vehicle Sales Up 35%

1st Place BYD, May Sales Surge 38%
2nd Place Tesla Declines 6%, 'Step Back'

Last month, sales of new energy vehicles in China increased by 35% compared to the previous year. Despite being the traditional off-season for car sales, this result was driven by the government's {$_이구환신(以舊換新) policy, which provides subsidies for replacement demand.

According to the China Passenger Car Association on the 4th, new energy vehicle manufacturers in China wholesale sold a total of 910,000 units last month. This represents a 35% increase year-on-year and a 16% increase month-on-month. The state-run Global Times (GT) of China commented, "Despite the high base in the same period last year and holiday factors, a relatively high growth rate was recorded," and evaluated that it was due to "support for replacement demand and promotional activities."

[Image source=Reuters Yonhap News]

According to the association, the top-selling company was Chinese manufacturer BYD, which sold 331,800 vehicles, achieving a 38.13% growth rate compared to the previous year. Tesla ranked second with wholesale sales of 72,573 units, which is a 6.6% decrease year-on-year. Tesla has been reducing the production volume of Model Y at its Shanghai factory by double-digit percentages since March, a measure taken in anticipation of decreased demand.

Chinese automaker JAC Motors recorded its highest-ever sales in May with 18,600 units, a 115% surge compared to last year.

Earlier, five departments including the Ministry of Commerce and the Ministry of Finance of China announced the {$_이구환신 policy to promote large-scale equipment replacement and consumer goods transactions. The authorities allocated 6.44 billion yuan (approximately 1.222 trillion KRW) to local governments for vehicle replacement and trade-in sales. Additionally, local governments provided subsidies amounting to 4.758 billion yuan, making a total policy subsidy of 11.198 billion yuan.

The {$_이구환신 policy aims to encourage the replacement of outdated manufacturing equipment and old consumer goods with new equipment and products. General consumers who scrap internal combustion engine vehicles registered before 2013 (emission level 3 or below) or new energy vehicles (electric, hydrogen, hybrid) registered before 2018 and purchase new energy vehicles by December 31 this year can receive subsidies of up to 10,000 yuan.

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