The collapse in China. The car market experienced a collapse

Sales of combustion cars collapsed by 43%. y/y to 534 thousand pieces, and electric vehicles and plug-in hybrids by 16.7%. up to 1.08 million units - the Japanese portal Nikkei Asia reported on Monday, citing the latest data from the Chinese Passenger Car Association (CPCA).

At the same time, a deeper decline in the segment of conventionally powered vehicles meant that the share of "electrics" in monthly sales of new cars reached a record 67%.

As noted, September, referred to in the industry as the "golden" month, did not bring the expected rebound on the world's largest automotive market. According to a survey conducted by CPCA, more than one-third of dealers declared that seasonal sales growth did not occur at all this year and that consumers are postponing purchasing decisions.

Producers' dependence on exports

The weakness in the domestic market contrasts with the results abroad, which, as Nikkei Asia notes, is illustrated by the reports of the companies themselves. The largest producers of electric vehicles, BYD and Geely, recorded a jump in export sales by 154%, respectively, in September. and 162 percent y/y.

At the same time, their sales in China fell by 13%. in the case of BYD, and by 20 percent in the case of Geely.

Where does the decline in demand in China come from?