Chinese Auto Market Is Undergoing Major Shift, New Energy Vehicles Regain Momentum, Echoed by BYD’s Dominance in March Passenger Car Sales

Published: Apr 24, 2023 10:38

Source: SMM

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SHANGHAI, Apr 24 (SMM) - People who tend to believe that the boom of the Chinese new energy vehicle market over the past two years was primarily driven by stimulus policies might have a second thought now as the market pattern seems to shifting, echoed by the divergent performances of NEVs and gasoline-powered ones in March.

Gasoline-powered car makers, including luxury brands, announced price cuts in March to cope with sluggish auto market. However, this failed to significantly boost sales.

In contrast, BYD dominated China’s passenger car sales in March, selling 207,100 cars, all of which are either pure electric ones or plug-in hybrid electric cars. In addition, the sales of other electric car companies also showed robust recovery. And the recovery of NEV market came after national subsidies expired at the end of last year.

This situation raises a question: will electric cars remain popular if all the ongoing stimulus polices, such as exemption of purchase tax, are removed.

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