China’s passenger car exports surged 80% in June compared with a year earlier, boosted mainly by demand for electric vehicles, though sales inside China fell 26%.
In the first half of the year, Chinese passenger vehicle exports rose 72% to more than 4.4 million vehicles, according to figures cited from the China Association of Automobile Manufacturers. Domestic sales remained larger overall, totaling nearly 8.3 million passenger vehicles in the first half and around 1.5 million in June.
China exported about 905,000 passenger cars last month, up from 809,000 in May.
The domestic market has been weighed down by intense competition and price wars. A prolonged slump in the property sector has squeezed household budgets and hurt demand. At the same time, cutbacks in government support for EV purchases have further dampened sales.
Consultancy AlixPartners forecast that sales of light vehicles, including passenger cars, in China could fall 10%, partly because buyers may be holding off on purchases while waiting for prices to drop further.
To improve profitability and expand market reach, Chinese automakers have been pushing harder into overseas markets, including by setting up production in key destinations. That strategy can help earnings, but it has also increased friction with trading partners.
Industry analysts have projected that exports could continue rising this year, as automakers “going global” becomes increasingly necessary to survive in China’s highly competitive environment.
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