China’s car exports also grew strongly in April as manufacturers looked abroad for a solution to sluggish domestic sales, data from the China Passenger Car Association (CPCA) showed on Friday.
Car exports jumped in April by 38 percent compared to the same month last year, with 417,000 vehicles delivered, after almost the same percentage growth in March, the association announced.
The current European investigation into potential state subsidies has affected exports to the EU, but China is actively exploring the markets of South America, Australia and ASEAN, said the general secretary of the association, Cui Dongshu.
Sales of vehicles on the domestic market fell in April by 5.8 percent, to 1.55 million vehicles, in conditions of fierce price competition and consumer restraint towards large expenditures in a period of unstable economic recovery. Compared to the previous month, it decreased by as much as 9.6 percent, Hina writes.
In March, companies sold 5.7 percent more vehicles on the domestic market than in the same month last year. Compared to February, their sales jumped by 53 percent.
According to Cui, manufacturers will have to decide whether to market their cars overseas or risk defeat at home, given the fierce competition.
“The market was weaker than expected, and some automakers still tried to continue production, resulting in higher inventory in showrooms,” Cui said.
The share of vehicles sold powered by new energy sources (NEV) increased further, to 43.5 percent.
Sales of electric vehicles increased by 12.1 percent compared to April last year, and sales of plug-in hybrids by as much as 64.2 percent.
The share of Chinese companies in the world market of plug-in hybrids reached almost 70 percent in the first quarter, according to the association’s data.
