Chinese autos: "Domestic plunge vs. export surge" — the two faces of internal collapse and external explosion

*This content was translated by AI.View Original

According to the latest data released on November 9 by the China Passenger Car Association (CPCA), passenger car retail sales in China's domestic market in October reached approximately 1,653,000 units, a slight 1.4% increase from the previous month, but a sharp 27.3% decline year-on-year. In contrast, export volumes are setting new all-time highs. While domestic sales continue to slump, exports keep rising — a situation where cold and hot water are poured on at once.

Passenger car retail sales also recorded approximately 1,643,000 units, up just 1.5% from the previous month, while falling 27.1% year-on-year, fully exposing the domestic market's sluggish phase. These figures indicate that China's finished-vehicle market is facing pressure for fundamental structural reform as it moves away from its traditional domestic-centric growth model.

In stark contrast, the pace of electrification transition and export performance shattered all-time records. In October, the retail and wholesale penetration rates of new-energy passenger cars reached 67.5% and 67.3%, respectively, setting new historical highs. The export segment continued its overwhelming growth momentum. Negotiated passenger car exports for the month totaled 928,000 units, surging 68.5% year-on-year, while cumulative exports from January to October reached 7,946,000 units, a 74.6% surge year-on-year, accelerating the opening of new pathways through overseas markets.

Cui Dongshu, chairman of the CPCA under the China Automobile Dealers Association, diagnosed that the traditional auto sales peak season formula of "Golden September and Silver October" has essentially vanished completely. The Chinese auto market is currently facing a harsh structural transition period divided between intense domestic survival competition in the home market and aggressive export expansion into overseas markets. The CPCA forecasts that the auto export growth rate will stabilize at around 10% next year, and warned that global finished-vehicle manufacturers must rush to build localized production bases overseas in order to break through trade barriers and survive.

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*This content was translated by AI.View Original