China's car sales snap five-month decline on subsidy boost
EVs, plug-in hybrids accounted for 52.8% of overall sales
Tesla sales in China up 66% year-on-year
China's government announced subsidies for EV trade-ins
Adds data, context in paragraphs 16-18
BEIJING, Oct 12 (Reuters) -China's passenger vehicle sales rose 4.3% in September from a year earlier, snapping five months of decline with a boost from a government subsidy to encourage trade-ins as part of a broader stimulus package.
All the gains came from battery-powered vehicles, whose buyers and manufacturers have benefited since July from a doubling of subsidies to consumers, while sales of gasoline cars in China, a market foreign brands once dominated, continue to shrink.
Sales in the world's biggest auto market hit 2.13 million vehicles in September, up from 2.04 million a year earlier. For the first nine months, sales were up 1.9% from 2023 levels, according to data from the China Passenger Car Association (CPCA).
Sales of electric vehicles and plug-in hybrids jumped 50.9%, accounting for 52.8% of overall sales. It was the third month in a row that battery-powered vehicles including plug-ins outnumbered sales of gasoline-engine cars in China.
Gasoline car sales in September were above 1 million, up more than 100,000 from August. But that was far short of September last year, when over 1.29 million were sold in China.
Sales of EVs and plug-in hybrids - a category the Chinese industry group classifies as "new energy vehicles" - hit 1.12 million in September and 7.13 million for the first nine months.
Global EV sales have slowed this year with automakers outside China scaling back production.
Sales in China, however, have risen, driven by expanded subsidies for consumers trading in older vehicles for EVs and more fuel-efficient cars - a programme likened to the U.S. "cash-for-clunkers" stimulus in 2009.
Tesla TSLA.O sold over 72,000 vehicles in China, up 66% year-on-year, its best month this year. The U.S.-headquartered company exported 16,121 China-made vehicles in September, down from over 23,000 the previous month.
Tesla, which counts on China for about a third of its sales, has added its own incentives, including zero-percent financing.
Chinese EV makers BYD 1211.HK 002594.SZ, Li Auto 2015.HK and Xpeng 9868.HK recorded their best-ever month in September.
China's best-selling new energy vehicle makers through the first eight months were BYD, Geely and Tesla.
SUBSIDIES KICK IN
China's government announced in July a subsidy of more than $2,800 when consumers scrap an older car to replace it with an EV, doubling a subsidy introduced in April. The subsidy for a more fuel-efficient combustion vehicle is just over $2,100.
As of late September, 1.1 million consumers had registered to take advantage of the subsidies.
Cui Dongshu, secretary-general of the CPCA, said on Saturday that he expects a strong fourth quarter on trade-in subsidies by local governments.
But car sales data also published on Saturday by the Chinese Association of Automobile Manufacturers (CAAM), another industry association, was less upbeat.
Vehicles sales last month in China fell 1.7% from a year earlier, according to CAAM data, which counts commercial vehicles like trucks as well as passenger cars.
Commercial vehicle wholesales, including exports, plunged 23.5%, worsening a 12.2% slide in August, CAAM data showed.
The government will "significantly increase" debt issuance to boost the world's second-largest economy, Finance Minister Lan Foan said on Saturday, as it seeks to lift faltering growth back towards its target of around 5%. China's central bank has announced interest rate cuts and liquidity injections in its largest easing since the COVID-19 pandemic.
An open question is whether China will channel more stimulus to support the purchase of EVs, a sector officials have identified as a priority.
The finance ministry plans to issue 1 trillion yuan ($140 billion) of special sovereign debt, using part of the proceeds to increase subsidies for the consumer goods trade-in programme and for business equipment upgrades, Reuters has reported.
Car exports grew 22% in September, bringing sales for the first nine months to 3.55 million vehicles, despite a political backlash against Chinese automakers in major overseas markets.
China overtook Japan to become the world's largest vehicle exporter last year. U.S. officials and others have argued China's capacity to make more cars than it can sell at home combined with past subsidies give Chinese EV makers an unfair advantage.
The European Union is pressing ahead with tariffs of up to 45% on Chinese-made EVs after a vote last week, a move opposed by Germany. China has said it hopes to avoid tariffs through negotiations that would set minimum EV sales prices in Europe.
The United States and Canada have each set tariffs of 100% on Chinese-made EVs that effectively lock them out of those markets.
($1 = 7.0666 Chinese yuan)
Car sales in China in September were highest for 2024 https://reut.rs/3Ymdsmc
NEV sales on the rise https://reut.rs/4eHoTdS
EV adoption in China and the EU https://reut.rs/3NmgWPh
Reporting by Qiaoyi Li, Zhang Yan, Kevin Krolicki and Eduardo Baptista; Editing by William Mallard and Sam Holmes
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
