China’s auto market booms in the first five months from January to May with NEV surge as per latest data revealed.
China’s automobile industry recorded strong growth in both production and sales during the first five months of the year, reflecting vibrant consumer activity in the world’s second-largest economy.
According to data released by the China Association of Automobile Manufacturers (CAAM) on Wednesday, automobile production reached 12.83 million units between January and May, marking a 12.7% year-on-year increase. Sales also rose by 10.9%, hitting 12.75 million units.
The new energy vehicle (NEV) segment saw particularly strong momentum, with production rising 45.2% year-on-year to nearly 5.7 million units. Sales of NEVs also grew by 44% to 5.61 million units during the same period.
NEVs represented 44% of all new vehicle sales in China over the January to May timeframe, indicating a substantial shift toward greener transportation options.
CAAM attributed the market’s resilience to factors such as stable economic growth, supportive consumer policies like the trade-in program for consumer goods, and the launch of new vehicle models by manufacturers.
To further boost consumer spending, China expanded its vehicle trade-in policy in January to include more passenger cars, aiming to enhance domestic demand by promoting upgrades in consumer and industrial equipment.
The data also revealed that China’s auto exports rose 7.9% year-on-year to 2.49 million units over the five months. Notably, exports of NEVs jumped 64.6%, reaching 855,000 units, reflecting growing global demand for Chinese electric vehicles.
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