economic rebound remained shaky. Data from the China Passenger Car Association showed retail sales of sedans, minivans, multipurpose vehicles, and SUVs decreased 6.5% year-on-year to 1.68 million units last month, following a 1.9% increase in May.
Sales of new-energy vehicles (NEVs), including electric cars and plug-in hybrids, also continued to decrease, PCA said. NEV sales dropped35% to 85,600 units, extending a plunge of 26% in May, 30% in April, and 49% in March. Electric-car sales have lost momentum since the government decided to reduce subsidies in the middle of last year. Plunging oil prices have also made cars with internal combustion engines more competitive.
PCA Secretary-General Cui Dongshu in April said China’s auto sector might experience a 10% sales drop in the whole of 2020 that would mark a third consecutive annual drop. Despite being the first economy to emerge from the pandemic, China’s auto sector is still facing long-term challenges. These challenges include ride-hailing services, which reduces the need for personal ownership and fast development in new technologies such as electrified motors which can prompt buyers to delay purchases.
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Published on July 9, 2020 5:03 PM (GMT+8)Last Updated on July 9, 2020 5:03 PM (GMT+8)
