Chinese market booms

Sales of cars in China climbed for the third month in a row during April. The year-on-year jump was 15 per cent as government-subsidised trade-ins mitigated the impact of US tariffs on consumer demand.

Passenger vehicle sales totalled 1.78 million units last month. For the first four months of 2025, they were up by 8.2 per cent from the same period in 2024 at 6.97m, according to the China Passenger Car Association (CPCA).

Sales of electric vehicles and plug-in hybrids, known as new-energy vehicles (NEVs) in China, jumped by 34 per cent to make up 50.8 per cent of total car registrations in April.

A government programme that hands out subsidies to trade in old cars for NEVs rather than petrol vehicles had covered 2.71m cars as of April 24, cushioning the impact of US tariffs.

Car exports from China decreased by 2.2 per cent last month from a year earlier and followed an eight per cent drop in March.

For domestic buyers, however, automated-driving systems are fading as a catalyst for sales, reports the CPCA. 

The focus of a years-long price war in the world’s largest automotive market shifted toward next-generation features after BYD announced in February it would offer its “God’s Eye” system, pictured, as free standard equipment across its line-up.

But the fervour to tout driver-assistance systems is cooling following a government crackdown on marketing terms, such as “smart” and “autonomous”, after a fatal crash involving a Xiaomi sedan in March.

The EV caught fire after hitting a cement pole seconds after the driver tried to assume control from its assisted-driving system.