Chinese auto sales surge in March, boosted by government subsidies

Published 09/04/2025, 10:02
Chinese auto sales surge in March, boosted by government subsidies

Investing.com -- Chinese auto sales experienced a significant rise in March, driven by ongoing government subsidies and reduced price competition.

Passenger car retail sales increased 14.4% from the previous year, reaching 1.94 million vehicles, according to data released by the China Passenger Car Association (CPCA) on Wednesday. This marks the fastest growth rate for March in a decade, a month traditionally associated with slower sales in the industry.

Compared to February, passenger car sales saw a 40% increase. The car industry is expected to continue benefiting from the Chinese government's trade-in program aimed at boosting consumption. Additionally, a less aggressive price war in the sector this year compared to 2024 has further supported sales.

The sales of electric vehicles also remained strong. Retail sales of new-energy cars, a category that includes battery electric vehicles (BEVs) and plug-in hybrids, climbed 38% to 991,000 units, according to the CPCA.

However, exports of passenger cars experienced a decrease, falling 8% to 391,000 units in March. On the other hand, exports of new-energy vehicles (NEVs) saw a 6.4% increase, reaching 143,000 units.

U.S. electric vehicle giant Tesla (NASDAQ:TSLA), Inc. faced challenges in the Chinese market, reporting an 11% drop in monthly sales to 78,828 units in March, and exporting 4,701 units, as per the data shared by the CPCA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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