Chinese passenger car sales rise for a third month in April

12 May 2025 - 08:11 By Reuters
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China's car sales in April rose for a third month, up 14.8% from a year before, as government-subsidised car trade-ins mitigated the impact of US tariffs on consumer sentiment.
China's car sales in April rose for a third month, up 14.8% from a year before, as government-subsidised car trade-ins mitigated the impact of US tariffs on consumer sentiment.
Image: Kevin Frayer/Getty Images

China's car sales in April rose for a third month, up 14.8% from a year earlier, as government-subsidised car trade-ins mitigated the impact of US tariffs on consumer sentiment.

Passenger vehicle sales totalled 1.78-million units last month and for the first four months of 2025 were up 8.2% from the same period a year before at 6.97-million units, data from the China Passenger Car Association (CPCA) showed on Sunday.

Sales of electric vehicles and plug-in hybrids, known collectively as new energy vehicles, increased 33.9% year-on-year to make up 50.8% of total car sales last month.

A government scheme that hands out larger subsides to trade-ins of old cars for NEVs than for gasoline vehicles had covered 2.71-million cars as of April 24, official data showed, cushioning the impact on Chinese consumer confidence as the increase in US tariffs on Chinese exports disrupt trade between the world's two largest economies.

Car exports slid 2.2% in April from a year earlier, extending an 8% decline in March, CPCA data showed.

For domestic buyers, however, automated-driving systems are fading as a catalyst for sales, according to the association.

The focus of a years-long price war in the world's largest car market shifted toward next-generation automated driving features after BYD announced in February to offer its "God's Eye" driver-assistance system as free standard equipment across its lineup.

However, the fervour to tout driver-assistance systems is cooling after a government crackdown on marketing terms using "smart" or "autonomous" to describe their technology after a fatal crash involving a Xiaomi SU7 sedan in March.

The EV caught fire after hitting a cement pole seconds after the driver tried to assume control from the car's assisted-driving system. 


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