China’s car sales rose for a fourth consecutive month in May, but slowing growth among major automakers signaled rising concerns over aggressive price competition in the world’s largest auto market.
Sales increased 13.9% year-on-year to 1.96 million units, according to data released Monday by the China Passenger Car Association, easing slightly from April’s 14.8% growth rate.
Sales of electric and hybrid vehicles grew 28.2% in May, down from a 33.9% rise the previous month. BYD, the country’s top EV maker, saw its annual passenger vehicle sales growth decelerate to 14.1%, compared to 19.4% in April, despite offering fresh subsidies and incentives late in the month.
Other major automakers, including Geely and Chery, also reported slower gains as attention in the industry shifted toward an intensifying price war. Authorities and leading companies such as BYD, Chery and Xiaomi have warned that these tactics risk undermining the sector’s long-term stability.
Cui Dongshu, secretary-general of the CPCA, said the industry should prioritize product quality and technological innovation, urging top automakers to lower their sales targets for the year.
Meanwhile, car exports rebounded with a 13.5% year-on-year rise in May, reversing a 2% decline in April.
