BEIJING/SHANGHAI (Reuters) – China’s passenger vehicle sales rose 25.5% in November from a year earlier, extending gains to a fourth month, industry data showed on Friday, as automakers stepped up a price battle to meet sales goals.
Car sales totalled 2.1 million units last month, data from the China Passenger Car Association (CPCA) showed, while growth accelerated from October’s 9.9% jump.
Sales in the first 11 months of 2023 were up 5% on the year at 19.56 million units.
New energy vehicle sales grew 39.8% in November from a year earlier, compared with a 37.5% rise in October, and made up 40.1% of total car sales.
Promotions and discounts for new energy vehicles intensified towards the year-end, as companies aimed to spur car purchases amid an anaemic economic recovery.
Sales promotions launched in November by major electric vehicle maker BYD and other producers have continued into this month, with additional automakers joining the year-end price battle.
A new package of tax breaks for new energy vehicle purchases through 2027 imposes caps on tax exemptions starting in 2024.
The added cost for higher-priced models that currently enjoy full exemptions is expected to act as a tailwind for year-end sales.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Jamie Freed, Mark Potter and Edmund Klamann)
