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Chinese Auto Sales Fell in June Amid Subdued Consumer Demand

By Jiahui Huang

 

China's vehicle sales fell in June, weighed by concerns over the country's uneven recovery and subdued consumer demand.

Retail sales of passenger cars fell 6.7% from a year earlier to 1.77 million units in June, but rose 3.2% from May, the China Passenger Car Association said Monday.

The country sold 9.84 million units in the first half of the year, up 3.3% from the first half of 2023, the association said. The CPCA estimates sales of more than 22 million vehicles in 2024, slightly higher than 2023 sales of 21.7 million units.

The CPCA is less optimistic about China's annual sales this year due to a faster-than-expected decline in sales of internal-combustion-engine cars, said Cui Dongshu, chairman of CPCA, during a press conference on Monday. He added that he is waiting for July sales data before releasing a formal forecast for annual sales.

Retail sales of new-energy cars, which include electric vehicles and plug-in hybrids, rose 28.6% to 856,000 units in June from a year earlier, thanks to continued high demand for NEVs. Consumers also stepped off the sidelines following an aggressive round of price cuts among EV makers at the start of the year.

China exported 378,000 cars in June, up 28% on the year and flat compared with a month earlier. Exports of NEVs rose 12.3% in June compared with a year ago, thanks to strong demand for small EVs in the overseas market, the association added.

Car sales rose in June compared with May, driven by companies' promotional events and the government's trade-in program.

The CPCA expects the market to start to cool in July, and for production and sales to become more stable.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

July 08, 2024 06:01 ET (10:01 GMT)

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