SHENZHEN, China, May 11 (Reuters) – China’s passenger car sales rose for the third consecutive month in April, increasing by 14.8% compared to the same period last year. This growth was supported by government-subsidized trade-in programs which helped offset the negative effects of U.S. tariffs on consumer sentiment.
Sales figures from the China Passenger Car Association (CPCA) indicate that 1.78 million passenger vehicles were sold in April. For the first four months of 2025, total sales reached 6.97 million units, representing an 8.2% increase year-on-year.
Notably, sales of new energy vehicles (NEVs), including electric vehicles and plug-in hybrids, surged by 33.9% year-on-year, accounting for 50.8% of total car sales last month. A government initiative offering higher subsidies for trading in old cars for NEVs has supported 2.71 million vehicles as of April 24, bolstering consumer confidence amidst trade tensions between the U.S. and China.
Despite this, car exports declined by 2.2% in April compared to the previous year, following an 8% drop in March, according to CPCA data. Domestically, the appeal of automated driving systems is waning as a sales driver, the association noted.
An incident involving an electric vehicle catching fire after colliding with a cement pole highlighted concerns about assisted-driving systems when control is transferred back to the driver.
— new from Reuters