China Car Sales See 20% Up In November As Makers Eye Sales Goals
China's car sales are expected to jump by more than 20 per cent in November, the China Passenger Car Association (CPCA) said on Wednesday, citing increased confidence among carmakers striving to deliver annual sales goals in the world's top auto market.
Car sales totalled 2.05 million units in October, up 9.9 per cent from a year earlier, extending gains to a third month. Sales in the first 10 months of 2023 rose 3 per cent year-on-year to 17.46 million units.
The October figures came on the back of a 2.2 per cent increase in August and a 4.7 per cent rise in September.
New energy vehicle (NEV) sales rose by 37.5 per cent in October year-on-year, accounting for 37.4 per cent of total car sales. NEV sales growth picked up from a 22.1 per cent increase in September, amid signs that an economic recovery was gaining traction.
Demand for electric vehicles, however, has weakened in China as consumers favour more economical plug-in hybrids, helping carmakers such as Li Auto and BYD gain market share.
BYD sold 301,095 passenger cars, including its Dynasty and Ocean series and Denza brand in October, up 38.4 per cent year-on-year, with more than 10 per cent exported, according to the company.
It offered limited-time discounts for November on some of its best-selling models as the company strives to meet its annual sales target of 3 million units. BYD has sold year-to-date 2.38 million new energy vehicles of both pure electric and plug-in hybrids.
US EV giant Tesla, in comparison with its Chinese rivals, saw lower sales, with October deliveries of China-made EVs down 2.6% from a month earlier and just 0.6 per cent higher year-on-year.
Tesla exported 43,489 China-made EVs last month, up 42.3 per cent from 30,566 in September, CPCA data showed, when the passenger vehicle export growth cooled slightly to 49 per cent from 50 per cent in September.
A price war started by Tesla at the beginning of the year is dragging down the profitability of companies that only make EVs, and these firms have stepped up efforts to prune costs and build partnerships to survive.
"The auto sector has already been in a very miserable state, with profit margins at absolutely historical lows of merely 4.5 per cent in September," CPCA Secretary General Cui Dongshu said, referring only to figures for September.
Leapmotor just struck a deal with European legacy conglomerate Stellantis to gain a European foothold.
Nio plans to trim its workforce by 10 per cent this month as it tries to improve efficiency and reduce costs in the face of growing competition, the Chinese EV upstart said on Friday.
(REUTERS)
