China's electric car exports more than double in May, domestic sales slump
China’s shipments of electric cars to overseas markets rebounded in May, registering more than double the number, reports Bloomberg. The growth in electric car exports from China comes as Covid-related restrictions have ended gradually. The report claims that carmakers in the country shipped $1.2 billion worth of electric cars in May 2022, up 122 per cent from the same period a year earlier and almost triple the level in April this year. It also claims that passenger cars worth $2.8 billion were exported last month, the fourth-highest monthly total in the past few years.
While the export of electric cars and ICE vehicles too have increased drastically, sales of these vehicles in the Chinese domestic market slumped miserably over the last eleven months. The automakers tried to bolster their export numbers amidst the declining domestic sales. This resulted in exports in the first five months this year exceeding the whole 2020 level.
The report claims that Europe was the biggest market for made-in-China cars in May 2022. Nearly half of the total shipment from China went to Europe in May and about three-quarters of electric car exports. The majority of the rest of the vehicles went to different markets across Asia.
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The report further points out that China’s current excess EV production capacity and low domestic sales mean it will continue to be a significant exporter in the medium term. China made up almost 60 per cent of global exports of electric vehicles in 2021 and the trend continues in 2022. However, with Tesla’s new factory in Europe already operational, exports from China may slow down in the coming months.