China's car exports surged to a record high in April, data showed on Friday, as domestic sales slipped 5.8% from a year earlier amid intensifying price competition and consumers' caution about spending on big items during a shaky economic recovery.
Car exports jumped 38% year-on-year to 417,000 units in
April, continuing strong momentum from the previous month which posted a 39%
growth in exports, the China Passenger Car Association (CPCA) said.
An ongoing anti-subsidy investigation by the EU into Chinese
automakers has disrupted and put pressure on vehicle exports to the bloc, but
China has been actively exploring South America, Australia and ASEAN markets
for exports, said Cui Dongshu, secretary general of the association.
He said local automakers would have to make a choice between
going overseas and losing out, as competition in the domestic market
intensifies.
Passenger vehicle sales in the world's biggest auto market
fell 5.8% in April from a year earlier to 1.55 million units and slipped 9.6%
from March, CPCA data showed. Car sales had risen 5.7% in March on the year,
and jumped 53% on the month.
"Market sluggishness was worse than expected, while
some automakers still strived to keep producing and resulted in rising
inventories at dealerships," Cui said.
While the share of new energy vehicle sales scaled a new
high, paving the way for the world's largest auto market to fast-track its
green goal, EV sales are still far slower than those of plug-in hybrids
(PHEVs).
NEVs accounted for 43.5% of total car sales, a record
full-month high after hitting a milestone of more than half in the first half
of April. China has set a target of 45% by 2027.
EV sales quickened to 12.1% in April from 10.5% in March,
while PHEV sales jumped 64.2% against a rise of 75.4% in March.EV sales had
contracted 6.3% from March while PHEV sales dropped 4.7%.
The PHEV segment, which has grown faster since 2022, drives
the success of domestic giant BYD, making up 57% of the company's car sales in
April.
China's share of the global PHEV market rose to nearly 70%
in the first quarter, Association data showed.
Japanese automakers who have pioneered hybrid technologies
lagged behind, capturing just 1.9% of the global PHEV market in the first
quarter.
Mediocre EV sales versus growing bets on an all-electric
future underscore slowing demand in China despite a protracted price war that
has drawn in more than 40 brands.
To woo cautious consumers, China has announced subsidies of
up to 10,000 yuan ($1,380) each for auto trade-ins and more automakers,
including Tesla and BYD, have started offering best-selling models with no down
payments.