Export of Chinese Cars Surged by Over 20 Percent in July

Car sales in China weakened in July, slipping five percent compared to the previous year, although exports surged by over 20 percent due to the expansion of electric vehicle manufacturers into global markets, reports the Associated Press.

More than half of all vehicles sold were electric or hybrid, and to stimulate demand, the Chinese government is offering incentives for drivers to trade in their older gas and diesel cars for electric vehicles.

While overall car sales remained weak, sales of electric vehicles rose nearly 30 percent in July compared to the previous year, totaling 991 thousand units. Of that total, 887 thousand were sold in China, and 103 thousand were exported.

Sales of foreign car manufacturers in China have stagnated or declined this year, confirming intense price competition in the saturated market.

The market share of Chinese manufacturers is rapidly increasing, accounting for two-thirds of total vehicle sales in July, as their vehicle sales rose by ten percent, writes the Associated Press.

Most vehicles sold in China from January to July were priced between 100,000 and 150,000 yuan (approximately $14,000 to $20,500). The largest share of sold electric vehicles was priced between 150,000 and 200,000 yuan, or $20,500 to $28,000.

Chinese manufacturers Chery Automobile, SAIC, and Geely, which produce internal combustion engine models, still export more vehicles than electric vehicle manufacturers like BYD and Tesla, but ‘the electrics’ are quickly gaining market share. BYD exported 31 thousand electric vehicles and hybrids in July, while Tesla’s exports totaled 28 thousand cars.

Additionally, BYD exported 2.38 million electric vehicles in the first seven months of this year, while Tesla exported 1.76 million.

The largest share of Chinese car exports this year went to Russia, which imported 478 thousand vehicles of Chinese production in the first half of this year, almost all of which are internal combustion engine models. Mexico is the second-largest importer (226 thousand cars), followed by Brazil with 171 thousand imported cars from China.