SHANGHAI -COVID-19 lockdowns slammed factories and showrooms in April, causing overall car sales to plummet nearly 48% year over year, while sales of electric vehicles soared, and Chinese companies gained market share from foreign rivals.
The monthly sales volume was the lowest in a decade, reflecting the economic toll of China’s severe COVID-control measures, which were implemented in April in Shanghai and other areas.
The China Association of Automobile Manufacturers (CAAM) provided a total of passenger car and commercial vehicle sales to dealers on Wednesday. According to figures issued Tuesday by a different trade association, retail sales of passenger automobiles fell over 36% in April.
Overall, vehicle sales in the world’s largest car market fell 12% in the first four months of 2022 compared to the same period a year earlier, according to the CAAM.
Sales of electric vehicles and plug-in hybrids remained a bright light, a fast-growing category that China has promoted as “new energy vehicles” and where Chinese brands currently dominate. EV and plug-in hybrid sales increased 45 percent in April, more than doubling from 2021 levels in the first four months of the year.
BYD was the biggest winner among Chinese companies, with sales up 164 percent in the first four months of the year, including April, when its American competitor Tesla (NASDAQ:TSLA) was hampered by supply difficulties.
According to data from the China Automotive and Battery Innovation Alliance, BYD, which also develops EV batteries, accounted for 32 percent of all batteries installed in electric cars in April, following CATL, which accounted for 38 percent.
BYD stock ended the day up 8.3%. CATL’s stock increased by 8%.
Tesla’s April sales fell 98 percent, with exports nil, after Shanghai’s shutdown hindered logistics near its manufacturing, according to statistics released Tuesday.
Tesla CEO Elon Musk stated on Tuesday that he expects China’s COVID limitations to be less disruptive in the long run, adding that China sales would account for 25% to 30% of Tesla’s worldwide sales.
“I’ve had recent discussions with the Chinese government, and it’s evident that the restrictions are being eased quickly,” he added.
The CAAM and other private experts predicted that production and demand will begin to make up for the losses suffered in April, when dozens of cities were shut down completely or partially.
With normal production levels in Shanghai this month, Daiwa Capital Markets predicted that major automakers will “catch up in the following months to make up for the sales loss in April.”
