SHENZHEN: China’s passenger car sales rose for the third consecutive month in April, surging 14.8% year-on-year to 1.78 million units, buoyed by government-backed auto trade-in incentives that softened the blow of rising US tariffs.
According to the China Passenger Car Association (CPCA), cumulative sales for the first four months of 2025 totalled 6.97 million units, up 8.2% compared to the same period last year.
New energy vehicles (NEVs), which include electric and plug-in hybrid models, saw sales increase by 33.9% year-on-year, accounting for 50.8% of total passenger vehicle sales in April.
The uptick was supported by a government programme offering higher subsidies for replacing old vehicles with NEVs rather than petrol cars. As of 24 April, the scheme had subsidised 2.71 million vehicle trade-ins, reinforcing consumer sentiment amid geopolitical trade friction with the US.
Despite robust domestic demand, China’s car exports fell 2.2% in April, following an 8% decline in March, reflecting the broader impact of global trade tensions.
Meanwhile, interest in automated-driving systems appears to be waning. The market had recently seen a surge in promotions for driver-assistance technologies, particularly after BYD announced its “God’s Eye” system as standard across its range. However, a fatal crash involving a Xiaomi SU7 sedan has prompted regulators to tighten restrictions on the marketing of so-called “smart” or “autonomous” features.–REUTERS
