Chart of the Day: China’s Car Sales Slide for Third Straight Month

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Carmakers in China suffered a third straight month of shrinking year-on-year sales in August as rising exports failed to offset weakening domestic demand.

Sales by automakers operating in the country last month fell 5% from the same period last year to about 2.45 million vehicles, according to data released Tuesday from the China Association of Automobile Manufacturers (CAAM).

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Carmakers in China saw a 5% year-on-year sales drop in August, totaling 2.45 million vehicles, despite a 25.4% rise in exports.
NEV sales increased by 30.9% to 990,000 vehicles due to doubled subsidies for trading older cars for new-energy vehicles.
Export growth remains uncertain due to new tariffs from the EU, U.S., and Canada, affecting China's auto industry.

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Who’s Who

Zhejiang Leapmotor Technology Co. Ltd.: Zhejiang Leapmotor Technology Co. Ltd. saw a surge in sales of its budget model, the T03 mini car, which starts at 49,900 yuan, following an increase in government subsidies for new-energy vehicles. CEO Zhu Jiangming highlighted the effect of these subsidies during an earnings call in August.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. was the top exporter among Chinese automakers in August, shipping 98,000 vehicles abroad. This contributed to China's overall rise in car exports by 25.4% year-on-year. Despite the growth, the future of China's auto exports remains uncertain due to significant tariff hikes announced by the EU, U.S., and Canada.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is one of the top three exporters of vehicles from China in August, with overseas shipments amounting to 71,000 vehicles. According to data from the China Association of Automobile Manufacturers (CAAM), this contributes significantly to China's overall car exports, which rose 25.4% year-on-year to about 511,000 vehicles.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. was one of the top three exporters in August, with overseas shipments totaling 60,000 vehicles. This was part of the overall increase in car exports from China, which saw a 25.4% year-on-year rise. However, the growth prospects for China's auto exports are uncertain due to significant tariff hikes announced by the European Union, the U.S., and Canada.

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What Happened When

July 2024：: The National Development and Reform Commission and the Ministry of Finance announced an increase in subsidies for people who replace older cars with new ones.

August 2024：: Carmakers in China suffered a third straight month of shrinking year-on-year sales.

August 2024：: Sales by automakers in China fell 5% year-on-year to about 2.45 million vehicles.

August 2024：: Domestic sales in China were down 10.7% year-on-year to about 1.94 million vehicles.

August 2024：: NEV sales in China jumped 30.9% year-on-year to 990,000 vehicles, the highest monthly sales total since January 2024.

August 2024：: Zhejiang Leapmotor Technology Co. Ltd.’s CEO Zhu Jiangming reported a surge in sales of their budget model, the T03 mini car, due to the subsidy increase.