China’s electric car exports will stop in 2025
reported by Mehr News Agency According to data from the China Passenger Car Association, the country is expected to be the largest exporter for the second consecutive year in 2024 despite additional tariffs, with a 25 percent increase in vehicle exports to 4.8 million units. The car ranked higher than Japan in the world. According to the report of the Japan Automobile Manufacturers Association, Japan’s car exports in the first 11 months of 2024 decreased by 4.3% to 3.82 million units.
But Cui Dongshu, Secretary General of the China Passenger Car Association said that export growth has slowed to 10 percent this year and Declining shipments to Russia are expected to add to tariff pressure in Europe, and electric vehicle exports are expected to see zero growth. The export of electric vehicles and plug-in hybrids, which are known as new energy vehicles, reached 1.29 million last year with a growth of 24.3%.
The China Passenger Car Association announced that Russia, Mexico and the United Arab Emirates were the top three markets for Chinese-made cars in the first 11 months of 2024, while exports to Thailand, Australia and the United Kingdom decreased.
Charles Lester, a research analyst, said while EU tariffs will limit sales of Chinese electric cars in the short term. However, setting up production facilities in Europe will help Chinese automakers gain market share in the long run. In China’s domestic market, the world’s largest auto market, the pace of growth is set to continue in 2024 as sales of electric vehicles and plug-in hybrids rise amid a brutal price war and It hit a record high with subsidized exchanges for greener cars boosting demand.
Great growth in China in a largely stagnant global EV landscape bodes well for local leaders like BYD, It was Geely and Xiaomi and it accelerated the proper process of the industry in the competitive market. It also benefited Tesla, whose sales in China hit a record high in 2024, offsetting an overall decline in the US electric car giant’s global sales.
Experts estimated that sales growth for electric vehicles and Plug-in hybrids in 2025 could be the weakest since 2021. China’s auto industry has seen profitability deteriorate over the years despite growing sales. The sales profit margin was 4.4% in the first 11 months of 2024. That compares to 5 percent in 2023 and 6.2 percent in 2020, the association said.
The data shows that passenger car sales will increase for the fourth consecutive year in 2024 by 5.3% to reach 23.1 million units. Despite sales growth, China’s auto industry has seen profitability deteriorate over the years. The sales profit margin was 4.4% in the first 11 months of 2024. That compares to 5 percent in 2023 and 6.2 percent in 2020, the association said.
Reuters reported that suppliers and vendors also suffered from a prolonged price war that forced them to further cut parts prices or offer further discounts.
