About half of the cars produced in China are now being exported.
According to the China Passenger Car Association (CPCA), China's car exports surged by 87.8% year-on-year in July, reaching 918,000 units, as reported by the China Business Network on August 12. Approximately 41% of cars produced in China were exported, up from 21% during the same period last year. Exports of new energy vehicles (NEVs) in July totaled 540,000 units, marking a 147.8% increase compared to the previous year. Cumulatively, exports for July this year reached 5.41 million units, a 60% increase from last year.
BYD, China's largest electric vehicle manufacturer, led the export market last month with 173,721 units, more than double that of the second-place Chery Automobile. BYD's total sales in July were approximately 420,000 units, a 22% increase from the same month last year.
Tesla exported 66,330 vehicles produced at its Shanghai factory, while domestic sales during the same period were 27,249 units.
Chinese electric vehicle startup Leapmotor, in partnership with Stellantis, is also experiencing rapid growth. The company's monthly sales have surpassed 100,000 units, with retail sales in China reaching 83,698 units, making it the third best-selling car brand in the country, driven by strong demand for popular models like the A10.
Despite the surge in exports, the domestic market in China has contracted significantly. Retail sales of passenger cars in July fell to 1.46 million units, a 21% decrease from the same month last year. Sales of internal combustion engine vehicles plummeted by 41%, while NEV sales decreased by 3.9%. The share of NEVs in domestic car sales has risen to a record high of 65%. While exports are booming, the domestic market is struggling. Analysts suggest that Chinese automakers are increasingly relying on international markets due to intensified price competition and rising costs in the domestic market, making it difficult to secure profitability.
According to the CPCA, the profit margin for China's automotive industry in the first half of this year was only 3.8%, significantly below the average of 6.5% for automotive supply chain companies. Rising raw material prices, extended payment periods for auto parts suppliers, and ongoing discount competition at the sales level are all contributing to the pressure on automakers' profitability.
* This article has been translated by AI.
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