China passenger vehicle sales rise in Dec, Tesla sales slump 41%: Data | Business News,The Indian Express
China's decision to end a more than a decade-long subsidy for EV purchases has contributed to the dip in the purchase of electronic vehicles.
China’s decision to end a more than decade-long subsidy for EV purchases has forced automakers, including Tesla, to deepen discounts to maintain sales, as demand eases in the world’s largest car market.
“The market will remain extremely weak before Chinese New Year,” Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), said on Tuesday, referring to the week-long holiday, one of China’s biggest annual festivals that begins on Jan. 21. He predicted that China’s passenger vehicle sales were likely to remain largely flat or slightly up in 2023.
CPCA said on Tuesday that China’s passenger vehicle sales in December rose 2.4% from a year earlier to 2.19 million units.
For all of 2022, when stringent COVID-19 lockdowns disrupted production and hurt demand, sales managed only a small increase of 1.6%. Tesla saw its December sales in China plunge 41% from a year earlier despite offering deep discounts.
Auto makers are bracing for what J.P. Morgan analysts called “a transitional pain period,” with January and February industry-wide sales of EVs and plug-ins in China down between 40% to 60% from year-end levels.
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