BEIJING – Chinese automobile manufacturers faced another challenging month in April as domestic vehicle sales continued their steep decline, according to new industry data released Monday.
The China Passenger Car Association reported that vehicle sales tumbled 21.6% compared to April of last year, totaling 1.4 million units and extending a concerning pattern of declining sales that has now persisted for seven consecutive months.
Cui Dongshu, who serves as secretary-general for the China Passenger Car Association, explained that traditional gasoline-powered vehicle sales fell short of projections due to elevated oil costs, while demand for plug-in hybrid models also remained weak.
Even the electric vehicle sector, which has been a bright spot for Chinese manufacturers, showed signs of struggle. Combined sales of electric vehicles and plug-in hybrids, representing 60.6% of total sales, declined 6.8% and have now dropped for four straight months.
However, Chinese automakers found success in international markets, where export numbers told a dramatically different story. Electric vehicle and plug-in hybrid exports surged 111.8% compared to the previous year, outpacing the already impressive 80.2% growth in total automotive exports. Industry analysts attribute this overseas demand to rising global fuel costs linked to the U.S.-Israeli conflict with Iran, which has made electric vehicles more attractive to international buyers.
The contrast between struggling domestic sales and booming exports is particularly visible at BYD, the world’s leading electric vehicle manufacturer. Despite maintaining strong international shipment numbers, the company’s global sales have now declined for eight consecutive months through April.
Financial analysts at Morgan Stanley recently updated their projections for the Chinese automotive market, maintaining their forecast of a 2% decline in overall domestic car sales for the year. However, they significantly raised their export growth prediction to 33% from their previous estimate of 15%, while also revising their domestic sales decline forecast to a steeper 11% drop from their earlier 6% projection.
