China's passenger car sector reports strong growth in June

BEIJING - China's passenger car sector recorded a double-digit growth in retail sales in June as the country's policies to boost consumption continued to take effect, the China Passenger Car Association (CPCA) said on Tuesday.

Last month, retail sales of passenger cars in China grew by 18.1 percent year-on-year to exceed 2.08 million units, data from the CPCA shows.

The association attributed the strong increase to the impact of the national consumer goods trade-in program.

The country reaffirmed its support for the program last month, ensuring continued funding to sustain the government subsidy payment throughout 2025. The program, a key part of the country's broader strategy to stimulate domestic consumption, encourages consumers to replace outdated products - such as home appliances and vehicles - with newer, more efficient models.

Last month, China produced 1.2 million new energy passenger vehicles, with retail sales exceeding 1.11 million units, representing year-on-year increases of 28.3 percent and 29.7 percent, respectively.

In the first six months of the year, retail sales of passenger cars exceeded 10.9 million units, increasing 10.8 percent year-on-year, according to the CPCA data.