electric represented a quarter of sales in China in August

Electric vehicles accounted for a quarter of total car sales in China in August, the world’s leading automotive market, according to figures released Friday by a professional federation. A total of 1.92 million penger cars were sold last month, up 2.5 percent year on year, the China Penger Car Manufacturers Federation (CPCA) said. With 551,000 fully electric vehicles sold in August, sales for this type of model are still showing strong growth in the huge Chinese market (+11.2% over one year). More than 80,000 hybrid models have also found buyers.

Dozens of innovative local brands have emerged in recent years in China and they compete with foreign manufacturers who are struggling to adapt. In August, the Chinese BYD was once again the undisputed electric champion in his country (more than 274,000 cars sold), far ahead of the American Tesla (84,159), which has of a gigantic factory in Shanghai and prepares the implantation of a second to manufacture batteries.

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The battle for first place

BYD, which markets its cars in fifty countries, including Europe, is one of the multitude of Chinese manufacturers to now turbo abroad. Logically, exports of Chinese new energy vehicles thus increased by +1.7% over one year. China became the world’s largest car exporter in the first half of the year, surping Japan for the first time, according to Chinese Customs. Chinese manufacturers had exported some 2.7 million vehicles by the end of July, according to Customs. The Chinese electricity market has experienced rapid development in recent years, driven in particular by purchase subsidies, which however disappeared at the end of December 2022.

To keep up the pace, manufacturers have launched a price war in recent months. At the same time, the Chinese Ministry of Commerce announced in June the start of a national incentive campaign for the purchase of electric cars which is due to end in December. In addition to discounts and subsidies, the ministry advocates accelerating the installation of charging stations in rural areas. This is one of the government’s targeted support measures to counter the economic slowdown.