China's automotive market sold 1.602 million passenger cars domestically in June, marking a 23% year-on-year decline, while exports surged 82% to 877,000 vehicles, underscoring a widening gap between robust overseas demand and a sluggish home market.
More than half of exported vehicles were new energy vehicles, with NEV shipments jumping over 150% from a year earlier. The China Passenger Car Association attributed the domestic slump to falling combustion-engine sales driven by rising oil prices. Association head Cui Dongshu noted polarisation in the electric segment, with growth concentrated in premium models while entry-level EVs face mounting pressure. The association forecast a 14% annual sales decline, though conditions may improve later this year.
Chinese automakers are pivoting toward Latin America and Southeast Asia to sustain growth, with manufacturers such as Leapmotor showcasing new models internationally. However, experts caution that the external environment remains complex and volatile amid the export boom.