According to the report from the China Passenger Car Association (CPCA), in January passenger car sales fell by 38% per annum, to 1.3 million vehicles, offsetting the December increase by 2.4% per annum. The drop in sales was due to the celebration of Lunar New Year, the expiration of a 50% purchase tax cut on combustion engine vehicles and the termination of subsidies for electric vehicles. Against this background, sales of new energy cars fell by 6.3% per annum in January, to 332,000 units, after an increase of 90% in 2022. New energy vehicles accounted for 25% of the total car sales in the month, down sharply from 35% in November 2022.
Experts said the latest data indicates that China's auto market is more dependent on various stimulus measures from local governments to encourage purchases. Meanwhile, China's auto manufacturers produced 1.35 million cars in January, down 33.9% from the year-earlier period.
The report also showed that in January, Tesla sold 66,951 Chinese-made electric vehicles (+18% for the month and +10% per annum), while its market share increased to 12.5% from 9% in December. However, this result was much lower than that of BYD Co Ltd, which sold 150,164 cars.