Growth in sales of China’s passenger vehicles was flat in March from a year earlier, industry data showed on Monday, as more price cuts by auto brands and the rollout of incentives by local governments helped to support demand.
Car sales in March were 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 per cent in March and accounted for 34 per cent of the month’s sales, the data showed.
BYD led the segment with market share of 35.5 per cent, while Tesla TSLA-Q accounted for 14 per cent.
There is no doubt that April will see a good recovery in sales growth, Cui Dongshu, the association’s secretary general, told reporters, citing a low base in the corresponding period last year.
China imposed strict COVID-19 lockdowns in major cities, such as its commercial hub of Shanghai, in April 2022.
Prices of NEVs have been falling fast, thanks to discounting and tumbling battery costs, stepping up 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 see the auto industry as a pillar of the economy, have also been rolling out buyer subsidies to drive demand and some of these programs have started to extend to automakers, to spur manufacturing.