China's automotive market took a significant hit in April, with car sales plummeting by 22 percent. Despite the growing demand for electric vehicles (EVs), the sector was unable to compensate for a sharp decline in internal combustion engine (ICE) sales. The downturn is largely attributed to the Chinese government's decision to roll back trade-in subsidies for ICE vehicles and reintroduce a purchasing tax on EVs, which had previously driven up demand for cleaner alternatives. As a result, the country's car market is now facing a tough road ahead, with industry experts warning of a potential slowdown in the sector's growth.
China’s car sales fell 22 percent in April after EV demand wasn’t strong enough to counter the slump in ICE demand due to the roll-back of trade-in subsidies and the return of a purchasing tax on EVs.
