China sales of new energy vehicles, mainly EVs and hybrids, rose 88% to 601,000 units YTD, reflecting tax incentives and other benefits available to buyers as well as a fast expanding range of products

China sales of new energy vehicles, mainly EVs and hybrids, rose 88% to 601,000 units YTD, reflecting tax incentives and other benefits available to buyers as well as a fast expanding range of products

New vehicle sales in China fell by 3.8% to 2.103m units in August from 2.186m units a year earlier, according to data released by the China Association of Automobile Manufacturers (CAAM).

This followed a 4% decline in July and reflected weakening domestic sentiment following a moderate slowdown in economic growth in the country, declining stock markets and growing trade friction with the US.

But, after strong growth in the first half of the year, the association still expects the overall vehicle market to grow by around 3% to close to 29m units this year and remains upbeat on the long term growth prospects for the market.

Total vehicle sales in the first eight months of the year were still 3.5% higher at 18.1m units.

Driving the market lower last month was a 7.4% fall in passenger vehicles deliveries to 1.76m units, according to separate data compiled by the China Passenger Car Association.

CAAM data showed passenger vehicle sales were still 2.6% higher at 15.19m units in the first eight months of the year, despite declines in July and August.

Commercial vehicles sales increased 1.1% to an estimated 340,000 units in August and 8.7% to 2.9m units year to date. 

New energy vehicles, consisting mainly of electric and hybrid vehicles, rose 88% to 601,000 units YTD, reflecting tax incentives and other benefits available to buyers as well as a fast expanding range of products on offer by the automakers.

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