June vehicle sales fell to 2.81 million units as domestic demand plunged 23% year-on-year amid policy shifts and industry reforms.
China’s vehicle sales, including exports, fell 3.2% year-on-year to 2.81 million units in June, reversing a 14% gain in the same period last year. Domestic sales collapsed 23% to 1.773 million units, while exports jumped 75% to 1.037 million units, offsetting some of the decline.
The drop follows the expiration of government subsidies and tax exemptions for new energy vehicles late last year. Authorities also banned below-cost pricing to end a prolonged price war, pressuring margins. Light passenger vehicle sales slid 5.3% to 2.402 million units, though commercial vehicle sales rose 11% to 408,000 units.
Manufacturers are now offering eight-year financing plans to boost affordability amid weaker demand. Production dipped 1.2% to 2.760 million units, signaling broader industry strain.