China home car sales downturn continues, exports retain momentum

BEIJING, Oct 12 (Reuters) – China’s domestic car sales extended their decline for a 12th successive month, while exports remained a key growth driver as automakers looked overseas to cushion the impact of a sluggish home market.

Passenger vehicle sales fell 28.1% from a year earlier to 1.63 million units in September, worsening from a 23.7% decline in August, data from the China Passenger Car Association showed on Monday.

Annual car exports jumped 73.2% to 923,000 vehicles last month, versus a 77.5% rise in August.

• Sales of battery electric vehicles and plug-in hybrids at home slid 16.7% from the year before to 1.08 million units, compared with a 10.1% fall in August. The segment’s export growth quickened to 163.5% from August’s 154.7%.

• Any curbs on plug-in hybrid exports are unlikely to significantly affect overall new energy vehicle exports, given the dominant role of pure EVs, said Cui Dongshu, secretary-general at CPCA.

• China and the EU have reached a deal that could halve Chinese hybrid vehicle exports to the bloc over four years, EU trade chief Maros Sefcovic said on Friday, though volume limits and terms for shipments above those quotas remain unclear.

• Shrinking domestic sales reflect broader economic weakness, with subdued consumer spending and a prolonged property downturn weighing on demand.

• Regulators have shifted focus from growth to safety and value, proposing rules that would curb rushed vehicle launches lacking sufficient validation.

(Reporting by Qiaoyi Li, Zhang Yan and Ju-min Park; Editing by Christopher Cushing and Lincoln Feast.)

Brought to you by www.srnnews.com

Click here to read the full article