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BEIJING – Sales of passenger cars in China rose 28.9% year-on-year (y-o-y) in August – the most in a decade – driven by a surge in demand for electric vehicles, a trade body said today.
A total of 1.87 million vehicles were sold last month, China’s Passenger Car Association said, with sales of hybrid and electric units doubling y-o-y in the world’s largest car market.
Sales had contracted sharply in May – shrinking by 17% y-o-y – and even more in April, which saw the biggest drop since 2020 at 40.4%.
The Chinese government introduced a string of measures, including a tax break extension, in July to stimulate sales of electric cars against the backdrop of an economic slowdown.
China’s electric car market is particularly competitive, with manufacturers jostling to take advantage of an industry boosted in recent months by generous purchase subsidies from local governments.
The measures are supposed to support the economy at a time when sporadic Covid-19 lockdowns around the country have dampened consumer enthusiasm and business confidence.
Local manufacturer Geely saw its sales jump in August by 429% y-o-y. – AFP, September 8, 2022
