China's automotive sector continues to experience a period of ups and downs. This is demonstrated by the data relating to the month of January: overall sales reached 2.44 million units, for growth of 47.9% compared to the same month last year but down 22.7% compared to December 2023 and more generally lower than expectations. The electrified segment (also) slowed down the pace of sales, including exports.
Electric slows down
From this point of view there is a lot of concern in the sector, to the point that Cui Dongshu, general secretary of the China Passenger Car Association, observed how electric vehicles have become a brake to the growth of the market and said he was convinced that the price war started by Tesla will continue throughout 2024. Data in hand, in any case, deliveries of electric vehicles are decreased by 37% compared to last month, and more generally NEVs, therefore electric, hybrid, hydrogen or equipped with other green technologies, represented 29.9% of total market sales.
Shared responsibilities
Clearly, we cannot think of attributing all of this to the electrified segment responsibility of this negative moment in the Chinese automotive sector. In fact, the economy of the Asian country as a whole is finding itself facing some major slowdowns: think of the prolonged decline in the real estate market, or the stock market which has reached the lowest levels of the last five years. A question of economy in general therefore, which as mentioned is also having repercussions on the auto sector.
A complicated 2024
It is difficult to say today what the future holds for car manufacturers operating in China, also because the situation of uncertainty not only concerns all areas, including exports which have been a real lifeline in these difficult months for the Asian country, but also have a considerable risk of extending over time. A situation which, explains Carscoops, effectively keeps analysts on edge: the next 11 months could prove to be extremely complicated for the Chinese market.
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