According to industry data released on Friday, China’s sales of passenger vehicles increased by 25.5% in November compared to the same month last year, surpassing the growth rate of October. This surge was fuelled by automakers stepping up their pricing wars to reach sales targets.

According to figures from the China Passenger Car Association (CPCA), car sales reached 2.1 million units last month, marking an acceleration in growth from October’s 9.9% surge.

Sales of new energy vehicles, which include plug-in hybrids and electric cars, increased by 39.8% in November over the same month last year, outpacing an increase of 37.5% in October. As year-end sales of cars increased, these vehicles accounted for 40% of all automobile sales.

Businesses have been trying more and more to encourage people to buy cars despite the weak economic recovery.

Major electric vehicle manufacturer BYD started running sales campaigns in November, and other manufacturers have carried on through this month, with additional automakers joining the contest.

Caps on tax exemptions beginning in 2024 are part of a new tax break package for new energy vehicle purchases through 2027; this will drive up the price of more expensive models while providing a boost to year-end sales.

According to the association, China’s sales of passenger cars will reach 22.2 million in 2024, a 3% increase from this year. If exports to Russia continue their strong development, growth might approach 5%.

Despite just marginal increases from October, BYD broke yet another record for sales in November and is on track to become the first domestic carmaker to sell three million vehicles a year.

EV upstarts like Leapmotor, Xpeng, and Li Auto also had record-breaking November deliveries. Aito, an EV brand supported by Huawei, has grown quickly, shipping over 10,000 of its redesigned M7 vehicles in November for a second month.

However, according to the secretary general of the association, Cui Dongshu, dealers in China are under a lot of pressure to reach sales and operational targets close to the end of the year, which has negatively impacted their earnings.

After initiating a price battle in China at the beginning of the year that has attracted over 40 brands, Tesla has changed its strategy and raised prices five times since late October.

CMB International stated in a report that Tesla is anticipated to prioritise its Shanghai factory’s profits in 2024.

The association’s statistics shows that the U.S. EV maker exported 16,928 EVs built in China in November, a 61.1% decrease from October. China’s total exports of passenger cars decreased by 3% between October and November.

(Adapted from NewsWav.com)

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