A report published by the China Passenger Car Association (CPCA) showed that passenger car sales jumped 5.7% per annum in March, reaching 1.71 million units. Meanwhile, in the first three months of 2024, passenger car sales increased by 12.5% per annum, to 4.88 million units. The CPCA said that the sales growth was due to automakers doubling down in a negotiated price war to woo cautious customers.
According to Moody's Investors Service forecasts, China is expected to witness a significant surge in the adoption of new-energy vehicles (NEVs), constituting approximately half of new car sales by 2030. This forecast points to steady and continuous growth over the next six years, fueled by government stimulus measures and the expansion of car charging infrastructure. NEV adoption rates soared to 31.6% in 2023 from 1.3% in 2015, already surpassing Beijing's target of 20% by 2025, as outlined in the government's long-term development plan announced in 2020. Moody's anticipated the industry to contribute 4.5%-5% of China's nominal GDP by 2030, offsetting weaknesses in other sectors like real estate.