China's Auto Sales Extend Decline in March

By Jiahui Huang

China's auto sales fell again last month, signaling continued cooling demand, though exports were a bright spot.

Retail sales of passenger cars dropped 15% to 1.65 million units in March compared with a year ago, the China Passenger Car Association said Thursday. Sales rose 59% compared with a month earlier.

Sales for the first quarter were slightly better than expected, the industry body said. Sales were weighed by changing tax policy for electric-vehicle purchases and a slow period following the Lunar New Year holiday, the CPCA said.

Only 18 new models were released in the first three months, down sharply from 33 in the same period in 2024 and 28 for the prior-year period. That, alongside higher costs for memory chips, metals and oil, weighed on auto sales, the CPCA added.

Retail sales of new-energy vehicles, a term encompassing EVs and hybrid cars, fell 14% to 848,000 units in March from a year earlier, the data showed.

Chinese automakers have redoubled efforts to expand overseas amid a slowing domestic market. Exports of passenger cars in March rose 74% to 695,000 units from a year earlier. Shipments of new-energy vehicles more than doubled to 349,000 units.

Tesla exported 29,563 units made at its Shanghai plant and sold 56,107 units to Chinese buyers.

Looking ahead, the CPCA expects a slow recovery for the auto market in April. However, the upcoming Beijing Auto Show in late April should support sentiment and the Labor Day holiday in early May could also boost vehicle demand as consumers undertake road trips, the industry body said.

Write to Jiahui Huang at [e-mail]

(END) Dow Jones Newswires

04-09-26 0511ET