Chinese Automakers Survive Through Exports: Domestic Sales Drop by 28%
In September, retail sales of passenger cars in China plummeted to 1.62 million vehicles, reports the China Passenger Car Association.
The decline marked the twelfth consecutive month of year-on-year drops. While sales increased by 5% compared to August, this did not offset the downturn in the domestic market.
Electric vehicles and plug-in hybrids accounted for 67% of all sales, though their volumes also decreased by 17%, falling to 1.08 million vehicles. The report notes that high oil prices are accelerating the shift from gasoline-powered cars to electric ones, but this is not enough to sustain overall demand.
Manufacturers are compensating for the decline through exports: 917,000 vehicles were shipped abroad, a 73.7% increase compared to the previous year. The share of exports in total sales rose from 19% to 36%, with some automakers exceeding 50%.
Europe may limit imports of Chinese hybrids to 350,000 vehicles per year, while they remain banned in the U.S. The Association also warned that rising prices for chips and memory due to artificial intelligence demand are slowing electric vehicle production.
Dealers report a weak effect from the traditional autumn sales peak and low inventory levels. The report emphasizes that the current downturn is a temporary phenomenon caused by short-term factors rather than a fundamental decline in automobile demand.
