Recent data reveals a notable expansion in China’s automobile sales and production, particularly in the electric vehicle (EV) sector, during the first quarter of 2024 amidst escalating tensions with Western nations regarding industry support policies.
According to the China Association of Automobile Manufacturers, auto sales in China surged by 10.6% to reach 6.72 million vehicles in the initial quarter of the year. State-run Xinhua News Agency, citing association figures, reported a 6.4% year-on-year increase in the country’s auto output to 6.6 million units during the same period.
The production of new-energy vehicles (NEVs) demonstrated significant growth, soaring by 28% compared to the previous year to reach 2.1 million units. NEV sales also experienced a substantial increase of nearly 32%, totaling 2.09 million units. China, already the largest auto exporter globally, witnessed a 33% rise in overseas shipments to 1.32 million units in the first quarter.
In response to criticism from the U.S. and Europe alleging excess EV capacity due to China’s industrial policies, Xinhua defended China’s position, stating that such accusations were unfounded. The commentary emphasized that claims of overcapacity in China’s EV industry were baseless, despite remarks from U.S. Treasury Secretary Janet Yellen during her recent visit to the country regarding artificially low-priced Chinese goods.
While China’s economy, the world’s second-largest, has faced challenges in returning to pre-pandemic growth levels, concerns have arisen over government support favoring supply chains over consumer spending. This has led to apprehensions about potential export subsidies in the automotive and green energy sectors.
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