Latest news with #CuiDongshu
Time of India
09-07-2025
- Automotive
- Time of India
China car sales jump in June but EV price war concerns intensify
China's car sales rose in June for the fifth straight month, but reports by some major electric vehicle makers of easing demand raised concerns about intensifying competition in the world's largest auto market. Sales grew 18.6 per cent in June year-on-year to 2.1 million vehicles from a 13.9 per cent rise in May. First-half sales were up 11.2 per cent to 11.1 million vehicles, data from the China Passenger Car Association showed on Tuesday. EV and plug-in hybrids sales, making up 52.7 per cent of total car sales, increased a hefty 29.7 per cent in June from a year earlier, up from 28.2 per cent in May. But local EV giant BYD saw car sales growth slow to 11 per cent from 14.1 per cent in May. Li Auto, which along with BYD are the only two listed Chinese EV makers with full-year profitability, logged a 24.1 per cent sales decline last month, reversing a 16.7 per cent rise in May. Geely Auto raised its 2025 sales target by 11 per cent to 3 million units, but its sales growth eased to 42 per cent from 46 per cent in May. The cooling or falling sales pointed to "a big dilemma" facing the industry, as any escalation into "a life-or-death competition could put some at risk of being eliminated," said Cui Dongshu, secretary-general of CPCA. Warning the industry of excessive competition, Chinese regulators have called on automakers to halt a growing price war, which is heightening worries about overcapacity amid weak domestic demand and US tariffs. Concerns about oversupply persist, as scepticism over car sales grows with reports of new vehicles being shipped overseas as "used" since 2019, according to a Reuters report in late June. Setting itself apart from industry-wide oversupply woes, Xiaomi, an emerging competitor to Tesla, received exceptionally strong orders for its second EV, the YU7 sports utility vehicle, which went on sale last month. Tesla's China sales swung to a 3.7 per cent increase last month from a 30 per cent fall in May, in the wake of its fastest-ever model ramp-up with just six weeks to full production of the refreshed Model Y in its Shanghai plant. Car exports rose 23.8 per cent in June from the year before, against a 13.5 per cent increase in May, CPCA data showed.
Wall Street Journal
08-07-2025
- Automotive
- Wall Street Journal
Trump's Megabill Gives Chinese EV Makers a Leg Up, Says Head of Auto Group
The U.S. megabill that President Trump signed into law on July Fourth favors obsolete gasoline-powered cars and hands Chinese electric-vehicle companies a win globally, said the head of a Chinese auto industry group. 'Chinese homegrown brands' exports will see significant growth in the next few years, and the U.S. bill should give China greater room to develop in overseas markets,' said Cui Dongshu, the secretary-general of the China Passenger Car Association, on Tuesday.
Business Times
08-07-2025
- Automotive
- Business Times
China car sales jump in June but EV price war concerns intensify
[BEIJING] China's car sales rose in June for the fifth straight month, but reports by some major electric vehicle makers of easing demand raised concerns about intensifying competition in the world's largest auto market. Sales grew 18.6 per cent in June year-on-year to 2.1 million vehicles from a 13.9 per cent rise in May. First-half sales were up 11.2 per cent to 11.1 million vehicles, data from the China Passenger Car Association (CPCA) showed on Tuesday (Jul 8). EV and plug-in hybrids sales, making up 52.7 per cent of total car sales, increased a hefty 29.7 per cent in June from a year earlier, up from 28.2 per cent in May. But local EV giant BYD saw car sales growth slow to 11 per cent from 14.1 per cent in May. Li Auto, which along with BYD are the only two listed Chinese EV makers with full-year profitability, logged a 24.1 per cent sales decline last month, reversing a 16.7 per cent rise in May. Geely Auto raised its 2025 sales target by 11 per cent to 3 million units, but its sales growth eased to 42 per cent from 46 per cent in May. The cooling or falling sales pointed to 'a big dilemma' facing the industry, as any escalation into 'a life-or-death competition could put some at risk of being eliminated,' said Cui Dongshu, secretary-general of CPCA. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Warning the industry of excessive competition, Chinese regulators have called on automakers to halt a growing price war, which is heightening worries about overcapacity amid weak domestic demand and US tariffs. Concerns about oversupply persist, as scepticism over car sales grows with reports of new vehicles being shipped overseas as 'used' since 2019, according to a Reuters report in late June. Setting itself apart from industry-wide oversupply woes, Xiaomi, an emerging competitor to Tesla, received exceptionally strong orders for its second EV, the YU7 sports utility vehicle, which went on sale last month. Tesla's China sales swung to a 3.7 per cent increase last month from a 30 per cent fall in May, in the wake of its fastest-ever model ramp-up with just six weeks to full production of the refreshed Model Y in its Shanghai plant. Car exports rose 23.8 per cent in June from the year before, against a 13.5 per cent increase in May, CPCA data showed. REUTERS
The Star
04-07-2025
- Automotive
- The Star
New energy vehicles drive overseas growth
BEIJING: China's automobile exports are experiencing a remarkable surge, driven by logistics upgrades and new energy vehicle (NEV) dominance. Chinese leading NEV maker BYD received its sixth roll-on/roll-off ship on Tuesday. Named BYD Changsha, the vessel is capable of carrying 9,200 vehicles. Three days before that, the company received another ship with the same capacity named BYD Xi'an. That ship has set sail from Taicang, Jiangsu province, in eastern China. It is heading toward European countries including Italy, the United Kingdom, Spain, and Belgium. With two more vessels scheduled for delivery this year, BYD will boost the fleet's annual capacity to more than 60,000 vehicles, enhancing overseas delivery efficiency and cutting costs and transport cycles for BYD. The logistics expansion also mirrors the broader industry's push to conquer global markets. This maritime upgrade comes as China's automobile exports hit 2.83 million units from January to May, growing 16% year-on-year (y-o-y), according to data from the China Passenger Car Association (CPCA). In the first five months, the primary destinations for these exports included Mexico, the United Arab Emirates, Russia, Brazil and Belgium. Notably, the United Arab Emirates and Mexico experienced the largest increases from the corresponding period in 2024, with rises of 74,046 and 47,595 units, respectively. Conversely, Russia saw a decline of 64% y-o-y. This was due to Russia's policy of protecting its domestic auto industry, including higher car loan rates and a scrap tax on imports. In May alone, China recorded 682,000 vehicle exports, up 20% y-o-y and 12% month-on-month. NEVs emerged as the growth engine, with 296,000 units exported in May, accounting for 43% of total exports. Cumulative January to May NEV exports reached 1.16 million units, up 33% y-o-y. Cui Dongshu, secretary-general of the CPCA, said that Chinese NEV exports in 2025 performed better than expected. Plug-in hybrids and hybrids are replacing pure electric vehicles (EVs) as growth drivers, especially plug-in hybrid pickups which stand out among commercial vehicle exports. Cui added that Chinese NEV exports are undergoing a transformative phase of high-quality development with a strategic focus on the Middle East and developed economies, especially markets in Western Europe and Asia. At the Chongqing auto show in mid-June, Huang Zhiming, chairman of Shanghai Zhida Technology Development, put forward a three-step framework for Chinese automakers seeking international expansion. He emphasised the importance of 'going out' to boost market share and brand recognition, 'going in' for local production and sales establishment, and 'going up' to elevate product quality, technology, and brand image for enhanced global competitiveness. Huang also underscored the importance of close collaboration with local industries, governments, and enterprises to assist market penetration and gain local acceptance. Automakers like BYD and Chery are leading the vanguard of China's automotive global expansion. Chery shipped 442,000 vehicles in the first five months of 2025, up 1.6% y-o-y. BYD's exports doubled y-o-y to 382,000 units during the same period. Duval de Vasconcelos Barros, Brazil's deputy consul general in Chengdu, said Chinese NEV brands sold more than 110,000 units in Brazil in 2024, capturing a market share of 65%. 'Chinese automakers BYD, Chery and Great Wall have already invested in building factories in Brazil, and GAC Group also plans to establish a plant in Brazil in the second half of 2026,' he said. He added that localising production in Brazil was becoming one of the best choices for Chinese automakers to expand into the Latin American market. Besides, global market expansion necessitates a nuanced approach that takes into account regional specifics. Thailand, which currently has only one EV testing laboratory, has called on Chinese automakers entering Thailand to not only introduce NEVs and technology but also collaborate to establish more EV testing labs, enhancing the country's infrastructure and consumer confidence in EVs. Edmund Araga, president of the Electric Vehicle Association of the Philippines, said that the country values the fusion of foreign and local standards in promoting NEVs. They look forward to Chinese automakers sharing local case studies upon entering the market. The China Association of Automobile Manufacturers forecasts export growth to slow to 5.8% in 2025, ending an era of hyper-expansion. Yet the NEV sector remains robust, fuelled by technological innovation and rising demand in developing and developed economies alike. -— China Daily/ANN
New Straits Times
25-06-2025
- Automotive
- New Straits Times
China auto industry inflates sales by exporting new cars as 'used
BEIJING/SHANGHAI: China's auto industry has inflated car sales for years through a burgeoning government-backed grey market that registers new cars right off the assembly line and then ships them overseas as "used" vehicles. These so-called "zero-mileage" cars have never been driven but are exported as used to markets like Russia, Central Asia and the Middle East. The practice allows Chinese automakers to show growth and offload inventory that would be difficult to sell domestically, according to a Reuters review of government documents and interviews with five auto dealers and traders. "This is the outcome of an almost four-year price war that has made companies desperate to book any sales possible," said Tu Le, Michigan-based founder of consultancy Sino Auto Insights. The practice only gained national attention after the boss of Chinese automaker Great Wall Motor criticised the sale of zero-mileage used cars within China in May. On June 10, the People's Daily condemned the practice. The paper, which often reflects the views of China's top Communist Party leadership, blamed such fake used cars for depressing prices during a severe domestic price war and called for "tough regulatory action" to restore order. Despite the criticism, the export of these fake used cars is actively encouraged by regional governments in China, according to a Reuters review of state media and government documents. Local authorities see the practice as crucial for meeting Beijing's ambitious economic growth targets. Reuters identified 20 local governments – including major export hubs like Guangdong and Sichuan – that expressed support for zero-mileage used car exports in publicly available policy documents. These include creating extra export licences, fast-tracking tax rebates, investing in export infrastructure, and funding trade networking events, documents showed. How the scheme works: As a new car rolls off the production line, an exporter purchases the vehicle from the automaker or dealer, registers it with a Chinese licence plate, and immediately labels it as second-hand for export. The automaker then books the sale and logs the revenue. Such support would make little sense outside China's centrally planned economy. But in China, meeting growth and employment targets can earn promotions or unlock more funding, while missing them can result in demotions of local officials. Because exporters both buy and sell the same vehicle, the transaction value is effectively doubled, allowing local governments to inflate gross domestic product statistics, two Chinese auto executives said. The practice is one sign that China's car industry – the world's largest – is producing more than it can sell domestically, fuelling a prolonged price war and intensifying global concerns about auto "dumping". Cui Dongshu, secretary general of the China Passenger Car Association, defended the practice during a panel discussion hosted by Tencent's news portal. He said it offered a workaround for reaching overseas markets that are hard to enter due to rising trade barriers. He added it helped satisfy demand in countries where Chinese brands had not yet established a foothold. Reuters contacted all the local governments mentioned in this article. None responded. China's State Council and commerce ministry did not respond to requests for comment. China's foreign ministry referred queries to "the department in charge" without elaborating. GOVERNMENT SUPPORT Local government backing takes many forms, such as simplifying paperwork, providing extra vehicle registration quotas, and offering free warehousing near China's borders, documents showed. In February 2024, Shenzhen's planning commission pledged to expand zero-mileage used car exports as part of a goal to export 400,000 vehicles of all types for the year. In neighbouring Guangzhou, authorities introduced a mechanism to speed up such exports by allocating additional vehicle registration quotas – otherwise restricted to combat traffic and air pollution. Xinmi, a district of Zhengzhou in Henan province, said in February it helped Xinjiasheng Supply Chain Management Co. Ltd "promote zero-mileage used car exports, in order to use exports to drive domestic sales." Reuters found a dozen local governments incorporating the practice into their strategic growth plans. Sichuan province said in an October policy document it helped create an "online export ecosystem for zero-mileage used NEVs" (new energy vehicles) via platforms such as Alibaba International, which now hosts 100 Sichuan-based used car sellers. Xinjiasheng Supply Chain Management and Alibaba did not respond to requests for comment. MARKET SHIFTS The practice emerged after China legalised used car exports in 2019. Since then, thousands of traders have been involved in labelling new vehicles as used to exploit the export channel, said Wang Meng, a consultant to the China Automobile Dealers Association. Of the 436,000 used passenger and commercial vehicles exported by China in 2024, 90 per cent are estimated to be zero-mileage, according to Wang. China overtook Japan as the world's largest new car exporter in 2023, shipping 6.41 million vehicles. About six per cent of these were zero-mileage used cars, Wang said. Dealers and experts said most zero-mileage used cars are petrol-powered and less appealing in China's increasingly EV-focused market. However, electric vehicles, which benefit from government subsidies, also make up a sizeable share. Chongqing-based Huanyu Auto entered the zero-mileage export business in 2022. "The returns were so good in 2022 and 2023 that we could earn 10,000 yuan (US$1,400) profit on a sedan bought for 40,000 yuan and sold in Central Asia," said William Ng, the firm's international market director. Criticism is building. On June 7, Zhu Huarong, chairman of Changan Automobile, urged a crackdown on such exports, warning it could "enormously damage Chinese brands' image" abroad. Changan did not respond to a request for further comment. Xing Lei, founder of US-based consultancy AutoXing, said the trend could make investors question Chinese automakers' sales figures. "How many are real or inflated? No one knows," Xing said. 'DUMPING' CONCERNS The growing number of new cars sold overseas as "used" is reinforcing fears that China is dumping state-subsidised vehicles into foreign markets, especially as US tariffs close one of its largest destinations. Several countries are starting to push back. Some worry the influx will overwhelm local dealers and confuse buyers. "We're definitely seeing friction and tension in markets where there are already manufacturers on the ground," said Michael Dunne, a consultant who tracks China's auto sector. In 2023, Russia banned zero-mileage used cars from brands with official distributors, affecting Chinese automakers like Chery, Changan and Geely, according to Heihe's commerce bureau. Geely declined to comment, while Chery and Changan did not respond. Other countries such as Jordan are tightening the legal definition of "used" by requiring longer post-registration or post-manufacture timelines before export. Ng of Huanyu Auto said competition from small-scale sellers and even influencers on platforms like TikTok is squeezing margins. "They used to sell vases and wine, and are now selling cars in the same way," he said. "This is chaos."
