China's motor vehicle sales fell nearly 3% in June as consumer spending slows in the nation of 1.4 billion people.
The China Passenger Car Association said automotive sales in June totalled 1.91 million units, down 2.9% from a year earlier.
June marked the first monthly decline in China’s vehicle sales since January of this year. However, sales increased 2.5% to 9.65 million units in the first six months of 2023.
Also, sales of electric vehicles and plug-in hybrids rose more than 25% in June from a year ago, accounting for roughly 35% of total automotive sales in China.
Both Tesla (TSLA) and rival BYD had record electric vehicle deliveries in this year’s second quarter despite a faltering economy.
Chinese automakers counted more on overseas markets to boost their June sales, with vehicle exports soaring 56% during the month.
With China’s economy weak coming out of the Covid-19 pandemic, the world's largest automotive market has also been struggling with a price war that has seen most automakers discount their vehicle prices in the country.
While the price cuts had initially increased sales, China’s recovery has been losing momentum, prompting additional automotive incentives, including tax breaks on electric vehicles.
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