China’s passenger vehicle market remained under pressure in May, with retail sales falling 22.1% year on year to 1.51 million units, according to the China Passenger Car Association. Sales in the first five months dropped 19.5% to 7.10 million units, underscoring the continued weakness in domestic demand.
Exports provided the main relief. Passenger vehicle exports rose 75.1% in May to 784,000 units, while shipments in the January-May period increased 68.1% to 3.37 million units, helping offset part of the domestic shortfall.
The CPCA said May’s market was defined by a rapid decline in gasoline-car sales, the growing dominance of new-energy vehicles and strong overseas demand. Although a broad recovery has yet to take hold, more stable pricing, early results from anti-price-war measures and demand generated by the Beijing Auto Show helped support a modest rebound at dealerships.
