BEIJING (Reuters) -China’s May car sales rose for a fourth consecutive month, but slower sales rises across major automakers, although the pace of growth slowed, highlighting concerns over aggressive price competition in the world’s largest auto market.
Sales grew 13.9% from a year earlier to 1.96 million vehicles last month, easing from a 14.8% increase in April, data from the China Passenger Car Association showed on Monday.
Sales of electric vehicles and hybrids rose 28.2% year on year, down from a 33.9% gain in April.
Leading EV maker BYD, reported decelerating annual passenger vehicle sales growth to 14.1% last month from April’s 19.4%, despite launching a new round of subsidies and incentives late in the month.
Other major automakers, including Geely and Chery, also reported slower growth as the industry’s attention shifted to intensifying price wars, which have raised concerns about a potential market shakeout.
Authorities have called for an end to these price battles, warning that they threaten the industry’s long-term health and sustainability. Leading automakers such as BYD, Chery, and Xiaomi have echoed this sentiment.
Meanwhile, exports rebounded, rising 13.5% year-on-year in May, reversing a 2% decline in April, according to CPCA data.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda GohEditing by David Goodman and Louise Heavens)
Comments