China’s domestic car sales experienced a downturn in April, dropping by 5.8% compared to the previous year, with 1.55 million units sold. This decline was also reflected in a 9.6% decrease compared to March, which had shown strong performance following the Chinese New Year festivities.
However, amidst the domestic slowdown, Chinese car exports soared to a record high in April, reaching 417,000 units, a 38% increase year-on-year. This upward trend in exports follows a similar surge of 39% observed in March, highlighting the growing global demand for Chinese-built cars.
According to the secretary general of the China Passenger Car Association, domestic automakers are faced with a crucial decision of whether to focus on expanding overseas or risk losing market share in the local market.
New energy vehicles (NEVs), including Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Fuel Cell Electric Vehicles (FCEVs), are gaining momentum in China. These vehicles accounted for 43.5% of all new car sales in the country last month.
Interestingly, PHEVs have been driving this surge in NEV demand, outpacing BEVs in growth. While BEV sales increased by 12.1% in April compared to the previous year, PHEV sales saw a substantial 64.2% jump. This trend follows a strong March for PHEVs, where sales rose by 75.4% compared to a 10.5% increase in BEV sales.
BYD, a Chinese automaker, particularly benefited from this rise in demand, with PHEVs accounting for 57% of its sales in April. Chinese manufacturers collectively accounted for nearly 70% of global PHEV sales in the first quarter, indicating China’s growing dominance in the PHEV market.
