China's passenger car exports in first eight months outpace last year's total
China exported more passenger cars in the first eight months of the year than it did for the entire previous year, while domestic sales fell sharply.
According to the China Association of Automobile Manufacturers, passenger car exports in the first eight months of the year exceeded the total exported in the previous year, surpassing 6.2 million units. August shipments jumped 67.1% from a year earlier, reaching roughly 890,000 vehicles, largely thanks to plug-in hybrid and fully electric models. Meanwhile, domestic passenger car sales declined 25.6% year-on-year to just under 1.5 million, reflecting fierce price competition and weakened consumer confidence amid a slowing economy.
S&P Global Ratings projects that total passenger-vehicle exports could grow between 50% and 70% for the full year, with strong overseas demand offsetting the weak home market. High tariffs keep most Chinese-made passenger cars out of the United States, so manufacturers are increasing sales to Europe, Latin America, Africa and Southeast Asia and are also establishing production facilities abroad. Stephen Chan of S&P Global Ratings said the export surge is likely to mitigate the domestic slowdown.
