SHANGHAI/BEIJING — China’s passenger vehicle sales increased yearly in August, as deeper discounts and tax benefits for environmentally friendly and electric automobiles lifted consumer mood despite slowing economic development.
Car sales were up 2.2% year on year in August to 1.94 million units, according to data from the China Passenger Car Association (CPCA) released on Friday, the first year-on-year increase since May. Sales increased 8.5% over July. Sales were up 1.8% in the first eight months, totaling 13.38 million units.
Tesla’s market share in China’s electric vehicle (EV) market doubled in August to 13.2 percent from 7.5 percent in July, according to Reuters calculations based on CPCA data.
According to the data, Tesla sold 64,694 cars in China in August, with its China-made Model Y deliveries leading the CPCA passenger vehicle model sales at 65,316.
Rivalries have heightened in China’s vehicle market, the world’s largest, as automakers grapple with declining demand and increased pricing competition. Xpeng, a smaller domestic rival, also used the Munich event to announce plans to expand into more European countries next year.
