Newscasts - China's car sales unexpectedly contract in October

Zhejiang Leapmotor Technology Co

10/11/2025 14:26

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Source: 'Reuters - Business videos'

Description: China's car sales fell unexpectedly in October from a year earlier, snapping an eight-month growth streak, as consumer sentiment weakened amid reduced tax exemptions and government subsidies. Ciara Lee reports.

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Video Transcript:

China's car sales fell unexpectedly in October from a year earlier to end eight months of growth. That's according to data from the China Passenger Car Association on Monday. It showed consumer sentiment weakened amid reduced tax exemptions and government subsidies. Car sales edged down not 0.8% to 2.27 million units last month. That was compared to a 6.6% increase in September. Growth in sales of electric vehicles and plug-in hybrids also slowed to a 7.3% rise against a more than 15% gain in September. Purchase tax breaks of up to $4,200 for EVs and plug-in hybrids are due to halve from next year. Meanwhile, government subsidies that drove more than 12 million auto trade-ins this year are gradually slowing as the consumer subsidy scheme draws to a close. Weaker demand only intensifies competition in the world's largest auto market. Local EV bellwether BYD extended a sales decline last month, while Geely and Leapmotor both refreshed sales records, leading a challenge against BYD in the budget segment.