Increased Car Exports in China but Domestic Consumption Remains Weak

Last Month's Sales in China Decreased by 2.8%

Unlike the increasing export volume of Chinese-made cars, domestic consumption has recently declined.

Export BYD electric vehicles placed at an eastern Chinese port [Image source=AFP Yonhap News]

On the 16th, Chinese economic media Caixin reported that using the monthly car sales statistics released on the 14th by the China Association of Automobile Manufacturers (CAAM), 1.936 million cars were sold last month in China, down 2.9% compared to the same month last year.

Passenger cars sold in China last month totaled 1.678 million units, a 2.8% decrease compared to the same month last year. Conventional internal combustion engine passenger cars sold 863,000 units, a sharp decline of 24.5%. Sales of new energy vehicles, including electric, hydrogen, and hybrid cars, were 99,000 units, down 9%.

While domestic car sales in China have decreased, export volume is on the rise. Last month, China exported a total of 481,000 vehicles, an increase of 23.9% compared to the same month last year. Passenger car exports totaled 397,000 units, showing a 22.1% increase compared to the same month last year.

Despite this situation, CAAM evaluated that positive factors in the automobile market continue unabated. Regarding this, Caixin drew a line against optimism, stating that "domestic consumption has generally stagnated." Global consulting firm McKinsey also pointed out in a recent report that unemployment, income instability, and asset reduction have dampened consumption within China.

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