BEIJING/SHANGHAI, Dec. 8 (Reuters) – China’s passenger car sales rose 25.5% year-on-year in November, the fourth consecutive month of faster growth than the previous month, as automakers intensify price competition. That’s what industry data showed on Friday. to achieve sales goals.
Data from the China Passenger Car Association (CPCA) showed car sales totaled 2.1 million units last month, with growth accelerating from October’s 9.9% increase.
New energy vehicle sales of electric vehicles and plug-in hybrid vehicles increased 39.8% year-on-year in November, outpacing the 37.5% increase in October, as promotions and discounts intensified towards the end of the year, and overall vehicle sales accounted for 40% of the total. .
Companies are increasingly trying to encourage car purchases as the economic recovery slumps.
Sales promotions started by major electric vehicle manufacturer BYD (002594.SZ) and others in November continue this month, with even more automakers participating.
New tax breaks for new energy vehicle purchases until 2027 will cap tax exemptions starting in 2024, pushing up prices for more expensive models and boosting the holiday season.
The association predicted that China’s passenger car sales in 2024 will reach 22.2 million units, an increase of 3% from this year, and the growth rate could reach 5% if exports to Russia continue to grow steadily. .
Despite only a slight increase from October, BYD is on track to set a new sales record in November and become the first domestic automaker to achieve annual sales of 3 million units.
EV startups such as Li Auto (2015.HK), Xpeng (9868.HK) and Leapmotor (9863.HK) also achieved record deliveries in November. Huawei-backed EV brand Aito has shown rapid growth, delivering more than 10,000 improved M7 vehicles in the two months of November.
However, the association’s secretary-general, Cui Dongxiu, said Chinese dealers face tremendous pressure to meet operating and sales targets near the end of the year, which is pushing down profits.
Tesla (TSLA.O) launched a price war involving more than 40 brands in China at the beginning of the year, but reversed course with five price hikes since late October.
CMB International said in a note that Tesla is expected to put more emphasis on profitability at its Shanghai factory in 2024.
According to the association’s data, U.S. EV manufacturers exported a total of 16,928 Chinese-made EVs in November, a 61.1% decrease compared to October. China’s overall passenger car exports fell 3% from October to November.
Reporting by Qiaoyi Li, Zhang Yan, and Brenda Goh.Editing: Jamie Freed, Mark Potter, Edmund Claman
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