Car Sales in China Fell by 24%, Exports Increased by 78%
In August, retail car sales in China fell by 24% to 1.54 million vehicles, while exports increased by 78% to 888,000 cars. Since the beginning of the year, sales have decreased by more than a fifth due to a price war among brands and a crisis in the real estate market. According to the China Passenger Car Association (PCA), automakers are increasing exports, which now account for 38% of total production, compared to 20% a year earlier. BYD raised its annual overseas sales target from 1.5 million to 2 million units, selling over 184,000 new energy vehicles in August. Tesla shipped about 86,000 fully electric models from Shanghai, of which 36,000 were sent for export. Analysts note that ongoing discounts have reduced the industry's profitability to 3.6% for the first seven months of the year, while the average profitability in the industrial sector is 6.5%. This creates dual pressure on Chinese manufacturers, who are facing rising raw material costs and the need to offer discounts to maintain sales volumes.
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