China recorded its first monthly drop in sales of new-energy vehicles (NEVs) in two years as the world’s largest automobile market continues a slowing trend and as the government slashed subsidies.
Sales of NEVs such as electric cars fell 4.7% in July from a year earlier to 80,000 units, the first decline since January 2017, according to data from the China Association of Automobile Manufacturers (CAAM), the country’s biggest auto industry association. CAAM figures represent deliveries to dealerships, not end consumers.
Chinese automakers produced 65,000 purely electric cars in July, down 4.8% year-on-year, while sales of such electric cars rose 1.6% to 61,000. Production of plug-in hybrid cars declined 13.2%, and sales fell 20.6%, according to CAAM. The association attributed the rare decline to fading subsidy policies for NEVs.
China’s auto market had the first annual contraction last year in nearly three decades and has continued shrinking this year. In July, overall car sales dropped 4.3% from a year ago to 1.8 million units, the 13th consecutive monthly decline. Passenger vehicle sales dropped 3.9%, CAAM said.