Retail sales of light passenger vehicles in China fell by a further 2% year on year to 1.71m units in May 2024 from 1.74m a year earlier, according to the China Passenger Car Association (CPCA).
See also: In data: Chinese market showed steady performance with sustained demand in April
That followed a similar decline in April despite the government’s continued efforts to stimulate domestic consumption, including reducing down payment requirements on car loans and offering a one off subsidy of CNY10,000 (US$1,381) until the end of 2024 to buyers trading in their old vehicles for qualifying new models.
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Vehicle manufacturers also stepped up their new model activities, particularly in the new energy vehicle segments, while dealers responded to rising competition with aggressive promotional campaigns and discounting.
BEV sales last month rose by over 9% to 531,000 units, according to the association.
Sales in the first five months of the year were still 6% higher at 8.073m from 7.636m previously, underpinned by strong demand for SUVs which increased 12% to 3.986m units.
MPV sales fell by 9% to 396,000 units year to date.
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By GlobalData
