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China’s passenger cars sales returned to growth in August year-on-year, as deeper discounts and tax breaks for electric vehicles boosted consumer sentiment.
Retail sales of passenger cars reached 1.94 million units in August, rising by 2.2% from a year earlier, the first year-on-year gain since May, and rising by 8.5% from the previous month, according to the data released by the China Passenger Car Association on Friday.
In the first eight months of the year, retail sales of passenger cars reached 13.378 million units, an increase of 1.85 from a year earlier, showed the data.
Retail sales of new energy vehicles reached 716,000 units in August, surging 34.5% from a year earlier and up 11.8% from the previous month, according to the association.
In the first eight months of the year, retail sales of NEVs reached 4.44 million units, rising by 36% from a year earlier, according to the association.
The penetration rate of NEV retail sales reached 37.3% in August, rising by 9 percentage points from the 28.4% a year earlier, it said.
Chinese automakers continued to bet on overseas markets, as domestic growth eased, with exports surging 31% in August on-year following a 63% jump in July, the data showed.
Buoyed by hefty discounts, Tesla’s share of China’s electric vehicle market almost doubled in August to 13.2% from 7.5% in July, according to calculations based on the CPCA data.
A price war initiated by Tesla at the start of the year is continuing, with the US EV maker announcing additional cuts after slashing prices twice last month. However, the company introduced its restyled Model 3 a starting price 12% higher than the previous, base rear-wheel drive model.
Tesla sold 64,694 cars in China in August, the data showed, while deliveries of its China-made Model Y hit 65,316 last month, topping the CPCA passenger vehicle model sales.