BEIJING (Reuters) -Automotive sales in China rose 0.9% in January from a year earlier, their first uptick after eight consecutive months of declines, industry data showed on Friday.
Overall sales in the world’s biggest car market rose to 2.53 million vehicles in January, data from the China Association of Automobile Manufacturers (CAAM) showed.
Sales of new energy vehicles (NEVs) in January reached 431,000, for an annual increase of 135.8%, according to the data.
Despite the year-on-year growth, sales of NEVs, which include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, fell 18.6%month-on-month after China cut subsidies for NEVs by 30% since January.
December sales surged as buyers rushed in ahead of a subsidy cut that took place in January, Cui Dongshu, Secretary-General of another industry body China Passenger Car Association (CPCA) said on Monday.
In December 518,000 NEVs were sold in China, increasing 159.5% year on year.
China has ambitious goals in promoting NEVs as part of efforts to curb air pollution and believes the industry has matured enough to be driven by demand rather than subsidies.
A global shortage of chips, used in everything from brake sensors to power steering and entertainment systems, has led automakers around the world to cut or suspend production, pushing up prices and hurting sales.
(Reporting by Sophie Yu and Brenda Goh; Editing by Clarence Fernandez and Sam Holmes)
