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The
China Association of Automobile Manufacturers said that sales
grew 4.4% year-on-year, down from September’s 11.2% increase and
a 15.1% jump in August. But exports of EVs and plug-in hybrids
doubled from a year earlier, to about 250,000, as automakers
expanded further into overseas markets.
Vehicle sales in China, the world's biggest market for sales,
got a boost in the past couple of years from government trade-in
programs meant to encourage drivers to switch to EVs. Some
Chinese cities and provinces have in recent months cut trade-in
subsidies. An extension of such big subsidies next year is
uncertain.
China is also expected to halve its tax exemption for electrics
and hybrids starting next year.
Tesla’s sales in China fell nearly 36% last month from a year
ago, to 26,006 vehicles, according to the China Passenger Car
Association (CPCA). That was down from 71,525 units sold in
September.
Also in October, BYD overall sales dropped nearly 12%
year-on-year, to 441,706, the company said, as it steps up
expanding in overseas markets including the UK to offset fading
demand in China under fierce competition with domestic rivals.
The phasing out of the trade-in subsidies in some regions in
China has caused domestic sales to slow, said Claire Yuan,
director of corporate ratings for China autos at S&P Global
Ratings.
“Even if extended, the effect (on car sales) is likely to be
milder,” with domestic passenger and light commercial vehicle
sales likely to decline in 2026, Yuan said.
Analysts also said pricing for car models will remain depressed
due to intense market competition and a prolonged oversupply of
vehicles.
BYD's market share fell in China while other automakers,
including Geely, Leapmotor and XPeng, have been gaining market
shares.
Meanwhile, China’s exports of electric vehicles have continued
to grow as automakers increasingly look to markets abroad such
as Europe and Southeast Asia.
Chinese car brands could account for 30% of the global vehicle
market by 2030, up from 21% last year, the consultancy
AlixPartners estimates.
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