China's passenger car sales drop 2.6% in July, exports soar 63% - PingWest

China's passenger car sales drop 2.6% in July, exports soar 63%

China's passenger car sales drop 2.6% in July, exports soar 63%

3 hours ago

China's passenger vehicle sales contracted for the second consecutive month in July, with deliveries down 2.6% from a year earlier to 1.79 million units, data from the China Passenger Car Association (CPCA) showed.

NEVs, which include pure battery electric vehicles and plug-in hybrids, continued to be the bright spot in the Chinese auto market, with deliveries up 31.9% in July.

The segment accounted for 35.8% of total car sales in July, up slightly from about 35% in June.

Auto sales fell on weak demand for big-ticket items in China's consumer market.

Authorities have been rolling out measures to boost car consumption in recent months as part of efforts to stimulate consumer demand. In June, they extended tax breaks for NEVs purchases until 2027.

Carmakers are expected to continue offering discounts for products in some segments and some of them may even ramp up discounting, said Cui Dongshu, the CPCA secretary general.

In overseas markets, Chinese auto companies performed well, with exports soaring 63% year-on-year in July.

Tesla, which makes the Model 3 and Model Y at its Shanghai Gigafactory, exported 32,862 China-made cars in July.

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