By Tracy Qu


Chinese car sales rose sharply last month, driven by government subsidies and sales campaigns.

Retail sales of passenger cars in November rose 16.5% from a year earlier to 2.42 million units and were up 7.1% from October, the China Passenger Car Association said Monday.

China's auto market extended its strong momentum that began in October, helped by the government's trade-in policy, the CPCA said in an article posted on its official WeChat account. Automakers also leveraged the Singles' Day shopping festival and the Guangzhou auto show in mid-November to get consumers' attention, the association said.

The positive trend for the world's largest auto market could continue, with the association saying that November's sales showed strong potential for Chinese consumers to upgrade or replace their vehicles.

Retail sales of new-energy cars, which include electric and hybrid vehicles, made up 52.3% of all passenger vehicle sales in November, the CPCA said, the fifth consecutive month the rate surpassed 50%.

BYD maintained its leading position in China in November, selling 504,003 units. Tesla China sold 78,856 vehicles last month.

In December, the car market could experience significant fluctuations due to the macro environment and seasonal factors, the association said. Auto demand could get a boost from consumers' rush to capture subsidies offered as part of the government's trade-in program, it said.

The CPCA projected auto retail sales to grow 6% in 2024 and said the market trend is significantly better than what was expected at the beginning of the year.


Write to Tracy Qu at tracy.qu@wsj.com


(END) Dow Jones Newswires

12-09-24 0502ET