Retail sales of passenger cars in China rose 2% year-on-year to 2.06 million units in September 2024, according to preliminary data from the China Passenger Vehicle Association (CPCA).
This follows five consecutive months of decline, reflecting weak economic growth as domestic consumption continued to be held back by the country’s ongoing real estate crisis. Overall GDP growth slowed to 4.7% annualized in the second quarter of 2024, down from 5.3% in the first quarter.
Retail sales of new energy vehicles (NEVs), consisting of electric, mainly plug-in hybrid electric vehicles, rose 51% year-on-year to 1.12 million units in September, driven by incentives introduced by the Chinese government this year.
In late July, the government doubled the one-time subsidy it introduced in April to CNY 20,000 (US$2,800) for buyers who trade in their old internal combustion engine (ICE) vehicles to qualify for new battery-electric vehicles (BEVs) . The government had also previously taken steps to push the struggling banking sector to reduce down payment requirements for car loans.
In the first eight months of 2024, domestic retail sales of passenger cars rose 2% to 15.5 million units, while NEV sales rose 37% to 7.13 million units.
“Chinese Car Market Rises in September” was originally created and published by Just automaticallya brand owned by GlobalData.
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