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Reuters
3 days ago
- Automotive
- Reuters
China's car sales growth slows in July, with weaker hybrid demand
SHANGHAI, Aug 8 (Reuters) - China's car sales growth slowed in July partly due to weaker demand for hybrids, as regulators in the world's biggest auto market crack down on a price war that has bruised the industry. Sales rose 6.9% from July 2024 to 1.85 million cars, down from an 18.6% year-on-year increase in June, data from the China Passenger Car Association showed on Friday. Sales growth of new energy vehicles, including pure electrics and plug-in hybrids, slowed to 12% from 29.7% in June, but still outsold gasoline cars for the fifth straight month. Demand for hybrids continued to weaken, with sales of plug-in and extended-range hybrids combined falling 3.6% from July last year as advancements in battery technology and charging infrastructure eased range anxiety about pure EVs. The trend boosted EV makers such as Leapmotor ( opens new tab, Xiaomi ( opens new tab, and Xpeng ( opens new tab, which reported record sales in July, but weighed on companies like BYD ( opens new tab and Li Auto ( opens new tab, which relied on hybrids for the bulk of their sales and profits. BYD saw vehicle sales drop in China for the third consecutive month in July, with a fall of 12% year-on-year, while its share of China's new energy vehicle segment shrank to 27.8% from 35.4% a year ago. Its global deliveries, however, edged higher last month, supported by a surge in overseas shipments that accounted for over 20% of total sales. BYD, China's biggest rival to Tesla (TSLA.O), opens new tab and the leader of the industry's price-cutting drive, saw production fall in July for the first time in 17 months. Li Auto, one of the few Chinese EV manufacturers alongside BYD to post a full-year profit, reported a 40% year-on-year sales decline last month. The pioneer in extended-range hybrids recently revamped its pure electric SUV lineup, introducing premium specifications at competitive prices. The auto industry has been central to a campaign by Beijing against excessive competition in industries wrestling with overcapacity and prolonged price wars. China will take steps to stabilise growth in the auto and other sectors, an industry ministry official said last month. Car exports growth accelerated to 25% in July from 23.8% in June, CPCA data showed. The association earlier upgraded its car sales and exports forecasts for this year, citing better than expected shipments in both domestic and overseas markets.
South China Morning Post
04-08-2025
- Business
- South China Morning Post
Can Hong Kong afford to jump on the mainland Chinese tech bandwagon?
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification President Xi Jinping's recent criticism of local governments for blindly pursuing hot industries like artificial intelligence and new energy vehicles should serve as a wake-up call for Hong Kong. The warning highlights the risk of 'involution' or vicious competition, especially if Hong Kong simply takes 'industrial diversification' to mean following mainland trends. In recent years, Hong Kong has promoted innovation and technology, yet a closer examination reveals a concerning sameness. Although the Northern Metropolis and Cyberport appear to focus on diverse areas – life sciences, microelectronics, Web3 – they often mirror similar innovation corridors on the mainland. Xi's question – of whether all provinces in the country have to develop the same few industries – might also be asked of Hong Kong. Given that Hong Kong is spending a lower share of its gross domestic product on R&D and that these resources are spread across multiple fields, the city is less likely to achieve breakthroughs in these areas. In the meantime, as mainland provinces strengthen their industrial chains, Hong Kong's role as a connector may diminish. The Central Urban Work Conference Xi presided over also proposed improving the efficiency of existing capacity and assessing debt risk, ideas that could apply to Hong Kong.
South China Morning Post
21-07-2025
- Automotive
- South China Morning Post
Chinese officials call on carmakers to clamp down on price spiral
In discussions with major carmakers, China has repeatedly brought up the 'irrational competition' driving down prices – an economy-wide issue threatening the buoyancy of emerging growth drivers , particularly new energy vehicles (NEVs) – calling for firms to establish lasting standards to ensure fair and orderly market activity. As Beijing seeks to rein in a cutthroat price war driving down growth potential in the sector – a trend that is also fuelling deflationary pressure – industry leaders gathered in the capital for two symposia held over two consecutive days, according to two statements released by the Ministry of Industry and Information Technology (MIIT) late Friday. Officials present instructed companies to take action and reverse the slide. 'It is vital to recognise the extreme urgency of curbing irrational competition in the NEV industry,' said Che Jun, deputy head of a central guiding group, at a meeting with the China Association of Automobile Manufacturers, the foremost trade association for carmakers. Representatives from Beijing Automotive Industry Holding and BYD also attended. Guiding groups are dispatched by the Central Committee of the ruling Communist Party to provide supervision and guidance to localities and industries relevant to the group's designated area of focus. Che stressed that the problem is prone to recurrence and therefore requires sustained, long-term efforts. Leading companies should set an example for the rest of the industry, he added, by engaging in lawful and rational market competition. The other symposium was held by MIIT, the National Development and Reform Commission and the State Administration for Market Regulation, with representatives from 17 leading carmakers present. The assembled government bodies said healthy industrial development should be promoted through cost oversight and price monitoring.
