China's domestic car market remains weak, but exports rise fast

Beijing [China], July 9: China's car market recorded a further decline in sales figures in June, while exports rose significantly.
The China Passenger Car Association (CPCA) reported on Wednesday that manufacturers sold 1.602 million cars in the People's Republic in June, a fall of around 23 percent compared with the same month last year.
At the same time, China's car exports rose sharply in June, up by around 82 percent year-on-year. According to the CPCA's figures, manufacturers sold 877,000 vehicles abroad. More than half of these were electric cars or hybrid vehicles, which are collectively referred to in China as New Energy Vehicles (NEVs).
NEV exports rose by more than 150 percent, the association reported.
The association attributed the trend in June to the slump in sales of internal combustion engine vehicles as a result of rising oil prices. It added that this trend was also accelerating the switch by many consumers from internal combustion engine vehicles to electric cars.
From the CPCA's perspective, the automotive industry is currently securing its growth through electrification and rising exports.
The association's head, Cui Dongshu, said that while the electric car market is growing in the premium segment, pressure is mounting in the entry-level segment for more affordable models.
China's car market, one of the world's most important, is in the midst of a protracted and aggressive price war.
Meanwhile, rising costs for car-specific chips and price speculation surrounding lithium carbonate - a key battery component - are putting pressure on companies' profits.
Source: Qatar Tribune