China's car sales stay flat in March amid price war
GROWTH in sales of China’s passenger vehicles was flat in March from a year earlier, industry data showed on Monday (Apr 10), as more price cuts by auto brands and the rollout of incentives by local governments helped to support demand.
Car sales in March stood at 1.61 million units, the China Passenger Car Association (CPCA) said. In the first three months, sales had fallen 13.4 per cent to 4.33 million units, it added.
Sales of new-energy vehicles (NEVs), which include pure battery electric cars and plug-in hybrids, rose 21.9% in March and accounted for 34% of the month’s sales, the data showed.
BYD led the segment with market share of 35.5 per cent, and Tesla accounted for 14 per cent.
Prices of NEVs have been falling fast, thanks to discounting and tumbling battery costs, the stepping up of pressure on internal combustion engine (ICE) vehicles and the legacy brands behind them.
More than 40 brands have joined a price war started by Tesla this year, among them Nissan, Toyota and Volkswagen, which have started offering aggressive discounts on their best-selling ICE models to defend market share.
Local authorities, who consider the auto industry a pillar of the economy, have also been rolling out buyer subsidies to drive demand; some of these programmes have started to extend to automakers to spur manufacturing. REUTERS
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