China Car Sales Rise Amid Intense Competition, Exports Soar 39% to Record High

Li Chen
10 Apr, 2024
Hong Kong

China's passenger car sales increased 5.7% in March from a year ago to 1.678 million units and rebounded 53% from the previous month after consumer demand rebounded following the Lunar New Year holiday. 

Electric vehicles account for about 41.5% of all passenger car sales in China. 

Electric vehicle sales rose 10.5% in March from a year ago as automakers launched new vehicles and offered significant price discounts and additional financing incentives. 

BYD sales increased 46% to 302,500 units, LI Auto sales advanced 39% to 28,984 units, and Cherry sales rose 45.3% to 181,585 units. 

Geely Auto said sales advanced 39% to 150,800 units, and Nio deliveries increased 14.3% to 11,866 units. 

Specifically, Chinese carmakers' sales in the first quarter rose 49% from a year ago to 475,700 vehicles, including vehicle exports of 87,000.

The China Passenger Car Association estimated that wholesale new energy vehicle sales, which account for battery EVs and plug-in EVs, increased 33% from a year ago to 820,000 units in March, an 84% rise from the previous month. 

China's overall passenger car export growth accelerated to 39% in March, from 18% in February, to 406,000 units. 

Rising sales came with a sharp fall in profit margins for Chinese companies after they slashed prices and introduced cheaper models. 

The profit margin of the Chinese  auto industry has declined to 4.3% from 8.7% in 2015, said Cui Dongshu, the secretary general of the China Passenger Car Association. 

Rising exports from China also have policymakers and officials worried in Europe and the U.S. 

U.S. Treasury Secretary Janet Yellen confirmed on Monday that tariffs are still likely to stem the rising exports of Chinese vehicles. 

“China is now simply too large for the rest of the world to absorb this enormous capacity,” Janet Yellen said at a press conference on Monday.