Beijing: The China Association of Automobile Manufacturers announced on Tuesday that passenger car sales in China slowed down last October, even for electric vehicle manufacturers Tesla and BYD, while car companies reduced prices to compete in an overly saturated market.
According to Yemen News Agency, the association stated that sales increased by 4.4% year-on-year, marking a decline from the 11.2% growth achieved in September and the 15.1% surge in August. It was also noted that exports of electric and plug-in hybrid vehicles doubled compared to last year, reaching about 250,000 units, as automotive companies further expanded their reach in foreign markets.
Vehicle sales in China, recognized as the world’s largest sales market, have been bolstered over the past two years by government vehicle replacement programs designed to encourage drivers to switch to electric vehicles. However, the country is expected to halve the tax exemption for electric and hybrid vehicles starting next year, which may impact future sales.
Tesla’s sales in China experienced a significant drop, falling by nearly 36% last month year-on-year to 26,006 vehicles, as reported by the Chinese association. This contrasts sharply with the 71,525 units sold last September. Meanwhile, BYD’s total sales in October also decreased by nearly 12% year-on-year to 441,706 units. The company is enhancing its expansion in foreign markets, including the UK market, in an effort to offset weak demand in China amidst intense competition with other local companies.