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China’s November Car Sales Seen Surging 18% on Subsidy Rush

A Tesla Inc. showroom in Shanghai. (Qilai Shen/Bloomberg)

(Bloomberg) -- China’s car sales likely surged in November as carmakers ramped up discounts and buyers rushed to take advantage of the government’s trade-in subsidy before it ends.

Retail vehicle sales grew to 2.4 million in November, up 18% compared with last year, according to preliminary data released Wednesday by China’s Passenger Car Association. 

Deliveries of electric cars and hybrids soared 52% to 1.3 million units for November, the data showed.

The end of the year is traditionally a busy time in the world’s largest auto market as carmakers unleash extra discounts in a final push to meet their annual targets. While EV and hybrid sales got a boost from a 20,000 yuan ($2,750) rebate, demand for gasoline cars continues to fall. The sector remains ultra competitive with dozens of brands fighting for market share.  

Some of the sales were accelerated by consumers who wanted to take advantage of the rebate before this year’s program ends. Extra subsidies from local governments were also running out in some regions, PCA wrote in the Wednesday statement. 

Commerce officials have said that they are planning for next year’s trade-in campaign, signaling the subsidy program may be renewed.

Automakers also launched more incentives from the end of November, such as Tesla Inc. offering interest-free five year loans on the Model Y sport utility vehicle and a 10,000 yuan ($1,375) discount.

©2024 Bloomberg L.P.