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Auto Sales · China · EVs · Exports
China's passenger car retail sales dropped 15% year-over-year to 1.65 million units in March, signaling continued cooling domestic demand, while exports surged 74% to 695,000 units, according to the China Passenger Car Association.
The domestic sales decline was attributed to changing tax policy for electric-vehicle purchases, a slow period following the Lunar New Year holiday, and fewer new model releases, with only 18 models introduced compared to 33 in 2024. Higher costs for memory chips, metals, and oil also weighed on sales.
Retail sales of new-energy vehicles, encompassing EVs and hybrids, fell 14% to 848,000 units in March from a year earlier. Despite the domestic slowdown, Chinese automakers are aggressively expanding overseas, with new-energy vehicle exports more than doubling to 349,000 units.
Tesla exported 29,563 units from its Shanghai plant and sold 56,107 units to Chinese buyers. The China Passenger Car Association anticipates a slow recovery for the auto market in April, with potential boosts from the upcoming Beijing Auto Show and the Labor Day holiday in early May.
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