German media Deutsche Welle (Chinese version) reported on the 8th that China's car sales fell for 8 consecutive months, and are expected to decrease by 10% for the full year.

According to the article, data released by China's industry association, the China Passenger Car Association (CPCA), showed that car sales in May were 1.5 million units, a 22.1% decrease year-on-year, falling below the previous year's monthly figures for the eighth consecutive month.

Sales of internal combustion engine vehicles, such as gasoline cars, sharply declined by 39% in May. Meanwhile, sales of electric vehicles (EVs) and hybrid vehicles, which are classified as new energy vehicles (NEVs) in China, also decreased by 7.5%, marking their fifth consecutive month of decline.

Cui Dongshu (ツイ・ドンシュー), Secretary-General of the CPCA, stated, "Since the outbreak of the conflict surrounding Iran, rising crude oil prices have suppressed demand for internal combustion engine vehicles, leading to a sharp contraction in demand. EV sales are also facing difficulties." Although China's automobile exports in May increased by 75.1% year-on-year, this was not enough to offset the decline in the domestic market.

In China, car sales from January to May this year decreased by 19.5%. One of the challenges facing the Chinese automotive market is the decline in consumer confidence, and the government's partial abolition of EV purchase subsidies is also believed to be a contributing factor. Furthermore, it is believed that the market has already matured, with annual car sales in China reaching 23 million to 25 million units.

On the other hand, overseas market demand for Chinese-made EVs remains robust, with BYD's (比亜迪) total car sales in May increasing for the first time in 9 months, and NIO's (蔚来汽車) sales also growing significantly. In addition, sales of Tesla vehicles produced in China reportedly surpassed those of the same month last year.