China’s Car Exports Boom as Domestic Sales Slump, Margins Shrink

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessChina's Car Exports Boom as Domestic Sales Slump, Margins ShrinkChina’s car exports surged again, serving as a lifeline for automakers mired in a domestic slump driven by rising fuel costs and weak consumer confidence.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — China’s car exports surged again, serving as a lifeline for automakers mired in a domestic slump driven by rising fuel costs and weak consumer confidence.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOverseas shipments jumped 88% year-on-year in July to 918,000 units, according to China’s Passenger Car Association. That means that 41% of cars produced in the country were sent abroad, compared with 21% a year ago.Robust exports contrast with the overall slump in total passenger vehicle retail sales, which dropped 21% to 1.46 million units in July. While that was led by a 41% decline in sales of internal combustion vehicles, new-energy vehicles including both hybrids and battery-electric cars fell 3.9%. NEVs accounted for a record 65% of sales, according to the PCA. The divergence highlights a structural shift in the world’s largest auto market, where automakers are increasingly reliant on overseas expansion to bolster their bottomline. At home, a prolonged price war, higher costs and a rollback purchase incentives have left carmakers struggling to entice buyers.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBYD Co. was the biggest exporter of NEVs last month, shipping 173,721 vehicles — more than twice the volume of no. 2 Chery Automobile Co. BYD’s total sales rose 22% last month to around 420,000 units. Tesla Inc. exported 66,330 vehicles from its Shanghai hub, and sold 27,249 locally.Meanwhile, Stellantis NV partner Zhejiang Leapmotor Technology Co. saw monthly sales volume top 100,000. Driven by popular mass-market models like the A10, the startup reported 83,698 domestic retail sales, making it the third best-selling car brand in China. Still, the PCA said that margins are being squeezed. China’s automotive industry recorded a 3.8% sales profit margin in the first half of the year, lagging behind the 6.5% average across upstream and downstream manufacturing. High upstream raw material costs, prolonged vendor payment terms, and persistent retail discounting continue to cap profitability, leaving carmakers dependent on sustained export growth to maintain operational scale, the association said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.