China: strong acceleration in sales of electric cars in May

Sales of electric vehicles in China, the world’s largest market, increased in May by 9.4% year-on-year, according to figures published Tuesday by a professional federation.

Last month, some 531,000 fully electric cars were sold there, the China Federation of Personal Car Manufacturers (CPCA) said.

In addition, 881,000 hybrid models have also found buyers, according to the CPCA.

From one month to the next, sales of electric vehicles jumped 14.8%, after a decline of 8.8% between March and April.

Dozens of innovative local brands have emerged in recent years in China and they compete with foreign manufacturers who are struggling to adapt.

In May, the Chinese BYD was once again the undisputed electric champion in its country (more than 250,000 cars sold), far ahead of the American Tesla (more than 72,000), which has a gigantic factory in Shanghai. and is preparing the establishment of a second one to manufacture batteries.

BYD, which markets its cars in around fifty countries, including in Europe, is one of this multitude of Chinese manufacturers to now put the turbo abroad.

The group had snatched the title of world’s largest seller of vehicles of this type from Tesla in the fourth quarter of 2023.

The Chinese electric market has experienced rapid development in recent years, driven in particular by purchasing subsidies.

The economic slowdown, which is weighing on consumer spending, has however led in recent months to a price war between manufacturers to the detriment of their profitability.

These figures are published at a time when Chinese manufacturers are the subject of a certain mistrust in Western countries.

Pressured by France, which has several historic manufacturers, the European Commission launched an investigation last year into Chinese state subsidies to the sector.

The commission must indicate in the coming days whether it decides to increase its customs duties on Chinese electric cars, currently taxed at 10%.

These compensatory measures could apply from July 4.

In May, Chinese exports of hybrid and electric vehicles were down 4% year-on-year, according to the CPCA.

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