Home / Business and Economy / China Auto Sales Dip Amidst Headwinds
China Auto Sales Dip Amidst Headwinds
11 Mar
Summary
- February wholesale auto sales dropped 15% due to holidays and subsidy changes.
- Domestic sales fell 34%, but exports surged 58% in February.
- Electric vehicle sales declined 30% in the first two months of the year.
China's wholesale automotive sales experienced a significant downturn in February, with a 15% decrease compared to the previous year. This decline was largely influenced by the Lunar New Year holiday period, which resulted in fewer business days, the expiration of a popular tax break for electric vehicles, and a reduction in government subsidies for greener car models.
Domestically, auto sales plummeted by 34% in February. However, this was significantly counterbalanced by a robust 58% increase in vehicle exports, reaching 590,000 units. The Middle East, accounting for approximately one-fifth of China's vehicle exports last year, is a region of concern due to the ongoing U.S.-Israeli conflict, potentially impacting future export figures.
In the first two months of the year combined, domestic sales were down 26%, while exports climbed 54%. The domestic market for electric and plug-in hybrid cars saw a substantial 30% decrease in sales during this period, a stark contrast to the 17.7% gain seen in the previous year. Automakers are also grappling with high inventories, with unsold cars totaling 3.57 million at the end of January, a significant increase from the previous year.
