China's Aug auto sales jump 32% with strong EV demand

Start Reading

The number of automobiles sold in China increased to 2.38 million units in August, up 32.1% from the same month last year. Electric cars (EV), whose sales have been encouraged by government incentives, have been the main driver of this rebound.

SHANGHAI

According to figures released on Friday by the China Association of Automobile Manufacturers (CAAM), sales for the first eight months were 1.7% higher than they were during the same time in 2021.Pure electric, plug-in hybrid, and hydrogen fuel-cell vehicle sales climbed by 100% in August compared to the same month last year.

While the China Passenger Car Association, which released July sales data on Thursday, concentrates on retail sales of cars, CAAM measures a wider range of auto sales, including those of passenger vehicles, buses, and trucks.

Sales in August, however, were 1.5% lower than in July due to power limitations that hampered automakers' ability to produce their products and China's longest and most extreme heatwave since records began in 1961 that discouraged customers from visiting showrooms.

China has tried to boost auto demand in the face of a faltering economy by offering incentives like a lower sales tax for small-engine vehicles and subsidies to encourage the trade-in of gasoline vehicles for electric ones.

However, other cities, such as Shenzhen and Chengdu, have implemented new lockdowns as Beijing continues to adhere to its "dynamic zero" COVID strategy to break every chain of transmission.

With automakers like Volvo, Toyota, and Volkswagen either halting production or converting their plants to closed-loop systems, which typically still has an impact on output, those steps are weighing on the industry once more.

Slumping U.S. stock market technical indicators flash warning sign

Click Here