HomeTechnologyChinese auto exports rise, offsetting domestic market decline

Chinese auto exports rise, offsetting domestic market decline

China’s car sales fell in June, but strong exports offset a domestic decline, an industry association said Wednesday.

Sales in China fell 7.4% year-on-year to 1.8 million cars. while exports increased by 29% to 400,000 unitssaid the China Association of Automobile Manufacturers in a monthly report.

In the first six months of the year, exports rose 31.5%, while domestic sales rose 1.6%. The surge in exports comes at a time when Europe and the United States are increasingly concerned that cheap cars made in China could outperform Western carmakers.

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While much of the concern has focused on Chinese electric cars, export growth has largely been focused on gasoline-powered vehicles. These increased by 36% in the first half of the year and represented 78% of vehicle exports..

China’s exports of electric vehicles fell 2.3%, while those of hybrid vehicles rose 180%, from a smaller base.

Exports helped offset weaker sales of gasoline vehicles in China as Chinese buyers turned to electric and hybrid vehicles.

Russia is by far the largest export market and continues to grow rapidly.with Chinese manufacturers filling the void left by the departure of other carmakers following Russia’s invasion of Ukraine.

Other important markets include Brazil and Mexico in Latin America, the United Arab Emirates and Saudi Arabia in the Middle East, and Belgium and the United Kingdom in Europe.

The European Commission imposed provisional tariffs on imports of Chinese electric vehicles last week, saying government subsidies give Chinese carmakers an unfair advantage.

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Chinese manufacturers are moving production overseas. BYD, the country’s largest electric vehicle maker, opened a factory in Thailand last week and plans to build factories in Brazil, Hungary and Turkey.

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The sales decline in China was the second consecutive monthly drop. Separate figures tabulated by the China Passenger Vehicle Association show three consecutive months of declining sales.

A severe crisis in the real estate sector has been slowing economic growth and reducing consumer confidence.

Source: Observadora

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