Transcript (en)

Car sales in China fell once again in May. Data from the China Passenger Car Association showed sales were down around 22% from a year earlier at just over 1.5 million vehicles in March the 8th straight month of decline. The trade body also forecast full-year car sales to fall 11%, well down from the previous estimate of just 1%. It added gasoline car sales fell largely due to oil price hikes linked to the Middle East crisis. Sales were down just under a fifth to 7.18 million vehicles for the first five months. The long slump shows a growing gap between China's headline economic growth and consumer demand for big items like cars. Analysts argue weaker consumer confidence has hurt auto demand. They also cite lower subsidies in a market that is mature after years of rapid expansion. EV and plug-in hybrid sales fell 7.5% from a year earlier last month, the fifth straight month of declines. Exports were a bright spot. EV and plug-in hybrid electric vehicle sales abroad rose more than 112% in May from a year earlier. That's compared with a near three-quarters increase in overall car exports. China's local downturn has hit global automakers at a key moment, especially Volkswagen. The German auto giant has tried to defend its historic position as a leader in China through a faster and more localised EV strategy.