Chinese Auto Market Sees Double-Digit Growth in Production and Sales from January to July

A large number of export cars gathered at Yantai Port in Shandong Province, China. They are waiting to be shipped overseas. CMG

The Chinese automobile market has maintained steady growth this year, driven by the 'Yiguhuanshin' (a trade-in policy that supports replacing old products with new ones) initiative and an increase in new vehicle launches.

According to the China Association of Automobile Manufacturers, from January to July this year, automobile production reached approximately 18.235 million units, and sales totaled about 18.269 million units, representing year-on-year increases of 12.7% and 12%, respectively. This marks a slight acceleration in growth compared to the January to June period.

In particular, the new energy vehicle segment (including electric vehicles and plug-in hybrids) showed remarkable growth. During the same period, new energy vehicle production reached 8.232 million units, and sales totaled 8.22 million units, up 39.2% and 38.5%, respectively. New energy vehicles accounted for as much as 45% of all new car sales.

New energy vehicles also drove growth in the export sector. From January to July, new energy vehicle exports surged 84.6% year-on-year to 1.308 million units.

An association official stated, "Long-term special government bonds to support the replacement of consumer goods have already been allocated at the national level, with additional allocations scheduled for October. These measures are expected to boost consumer confidence and help stabilize the market in the second half of the year."