China's Car Sales Rise in May, but Price Wars Cloud Outlook
China's car sales rose for a fourth consecutive month in May, but slower increases across major automakers highlighted concerns over aggressive price competition in the world's largest auto market.
Sales grew 13.9% from a year earlier to 1.96 million vehicles last month, slowing from 14.8% growth in April, China Passenger Car Association (CPCA) data showed on Monday.
Sales of electric vehicles and hybrids rose 28.2% year on year, down from a 33.9% gain in April.
Leading EV maker BYD reported decelerating annual passenger vehicle sales growth to 14.1% last month from April's 19.4% despite a new round of subsidies and incentives late in the month.
Other major automakers, including Geely and Chery, also reported slower growth as the industry's attention shifted to price wars that have raised concern over a potential market shakeout.
Authorities have warned that such price wars threaten the industry's long-term health, with the sentiments echoed by leading manufacturers such as BYD, Chery and Xiaomi.
The CPCA's secretary-general, Cui Dongshu, said the industry should focus on quality and technology innovation and that leading automakers should lower their sales targets for this year.
CPCA data also showed that car exports rebounded, rising 13.5% year on year in May, reversing a 2% decline in April.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
30 minutes ago
- Arab News
Air India cuts narrowbody jet routes, suspends international flights after deadly crash
NEW DELHI: Air India said on Sunday it is temporarily reducing less than 5 percent of its narrowbody jet routes for 'operational stability,' its second such reduction following a plane crash earlier this month that killed all but one of the 242 people on board. The airline, reeling from the deadliest crash in decades, said in a post on X that the cuts will strengthen its network-wide operational stability. Two daily flights from India to Singapore will be suspended along with disruptions on 19 domestic routes until July 15, it said. On June 18, the airline cut international operations on its widebody aircraft by 15 percent, citing ongoing safety inspections and operational disruptions.
Al Arabiya
13 hours ago
- Al Arabiya
Japan and South Korea Mark 60 Years of Ties Despite Lingering Tension and Political Uncertainty
Japan and South Korea are marking the 60th anniversary of the normalization of their diplomatic relations. The two Asian powers, rivals and neighbors, have often had little to celebrate, much of their rancor linked to Japan's brutal colonial rule of Korea in the early 20th century. Things have gotten better in recent years, but both nations – each a strong ally of the US – now face political uncertainty and a growing unease about the future of their ties. South Korea's new liberal president, Lee Jae-myung, is determined to break sharply from the policies of his disgraced predecessor, Yoon Suk-yeol, who now faces a trial on charges of leading an insurrection over his imposition of martial law in December. Relations with Japan, however, are one area where Lee, who describes himself as a pragmatist in foreign policy, may find himself cautiously building on Yoon's approach. Before his removal from office in April, the conservative former president tried to repair relations with Japan. Yoon wanted to also tighten the countries' three-way security cooperation with Washington to counter North Korean nuclear threats. In 2023, Yoon announced a South Korea–funded compensation plan for colonial-era forced laborers. That decision caused a strong backlash from victims and their supporters, who had demanded direct payments from Japanese companies and a fresh apology from Tokyo. Yoon's outreach boosted tourism and business ties, but there's still lingering resentment in South Korea that Japan failed to reciprocate Seoul's diplomatic concession by addressing historical grievances more sincerely. While advocating for pragmatism and problem-solving in foreign policy, Lee has also long criticized Japan for allegedly clinging to its imperialist past and blamed that for hurting cooperation between the countries. Some experts say the stability of the countries' improved ties could soon be tested, possibly around the August 15 anniversary of Korea's liberation from Japanese colonial rule at the end of World War II, when Lee is expected to publicly address the nation's painful history with Japan. Some in Seoul want Japanese Prime Minister Shigeru Ishiba to mark the anniversary with a stronger statement of remorse over Japan's wartime past to put bilateral ties on firmer ground. While wartime history will always linger in the background of Seoul–Tokyo relations, Lee and Ishiba may face a more immediate concern: US President Donald Trump's rising tariffs and other 'America First' trade policies. South Korea's Hankyoreh newspaper, in an editorial this week, called for South Korea and Japan to collaborate immediately on a joint response to Trump's policies, arguing that the proposed US tariffs on automobiles pose similar threats to both countries' trade-dependent economies. Ishiba, eager to improve ties with Seoul, has acknowledged Japan's wartime aggression and has shown more empathy to Asian victims than his recent predecessors. His first encounter with Lee seemed positive despite worries in Japan about South Korea's stance under a liberal leader known for attacks on Japan's wartime past. Lee, in that meeting with Ishiba at the G7, likened the two countries to neighbors sharing the same front yard and called for building a future-oriented relationship that moves beyond their small differences and disagreements. Ishiba and Lee agreed to closely communicate and to cooperate on a range of issues, including North Korea's nuclear and missile development. Under a 1965 normalization treaty, Japan provided $500 million in economic assistance to South Korea, saying all wartime compensation issues were settled. However, historical issues, including forced labor and sexual abuse of Korean women during the war, have disrupted ties over the decades, while South Korea has become an Asian power and a rival to Japan, and while Tokyo, especially during the late Prime Minister Shinzo Abe's rule, has promoted revisionist views. Japan has since offered atonement money twice for the so-called 'comfort women:' an earlier semi-private fund and a second one unilaterally dissolved by former South Korean President Moon Jae-in's liberal government. Things have improved in recent years, and Japan is watching to see whether Lee sticks with his conservative predecessors' more conciliatory diplomacy or returns to the confrontation that marked previous liberal governments. Cooperation between the two sides is more essential than ever to overcome their shared problems, such as worsening regional security and Trump's tariffs that have shaken free trade systems, Japan's largest-circulation newspaper, Yomiuri, said in a recent editorial. At a 60th anniversary reception in Tokyo, Ishiba said that he sees a bright future in the relationship. He expressed hope also for cooperation in common challenges such as low birth rates and declining populations.
Arab News
a day ago
- Arab News
Pakistan says sharing battlefield intel with China on India air war last month
ISLAMABAD: Pakistan's Defense Minister Khawaja Asif said this week it was 'very normal' for Islamabad to share battlefield intelligence with close ally China in the aftermath of last month's brief but intense military confrontation with India, though he downplayed suggestions Beijing played a direct operational role or provided decisive satellite support during the aerial fight. The May 7–10 conflict — the heaviest fighting in decades — has drawn significant interest from Western militaries, security observers and diplomats, who see it as a rare opportunity for China to study the performance of Indian pilots, fighter jets, air defense systems and air-to-air missiles in real combat conditions. With Beijing locked in its own longstanding border disputes and strategic rivalry with New Delhi, analysts believe any Pakistani data trove could sharpen China's military readiness. China is already Pakistan's principal supplier of military hardware, providing fighter jets, missiles, submarines and surveillance technology. The two neighbors share a strategic alliance driven in part by their disputes with India, which has fought wars with both nations. Close economic and security ties, anchored by the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), has further strengthened the relationship. 'It is very normal if we are sharing any information which we have which can threaten us or the Chinese because the Chinese also have problems with India,' Asif told Arab News in an interview this week when questioned if Pakistan was sharing intelligence with Beijing on Indian use of air defenses and launches of cruise and ballistic missiles, as well as command and control information. 'I think it's very natural if we share intelligence which is gathered through satellites or gathered through other means.' In the military confrontation that began on May 7, Indian fighter jets bombed what New Delhi called 'terrorist infrastructure' in Pakistan in response to an April 22 attack in Indian-administered Kashmir that killed 26 people, mostly tourists. Islamabad denied involvement in the Kashmir assault but retaliated to the Indian airstrikes with tit-for-tat military action that involved fighter jets, drones, missiles and artillery. A ceasefire was brokered by the US and announced on May 10. Pakistan said its Chinese jets shot down at least six Indian military planes, including three French-made Rafales, during the four days of clashes. General Anil Chauhan, India's chief of defense staff, has admitted that an unspecified number of its jets were lost. 'MADE IN PAKISTAN' VICTORY The London-based International Institute for Strategic Studies (IISS) says China now operates at least 115 satellites dedicated to intelligence, surveillance and reconnaissance, and 81 for monitoring military electronic and signals data, a network second only to the United States and far ahead of India's capabilities. According to two Islamabad-based Western diplomats involved in the May ceasefire negotiations and one Pakistani security official, all of whom requested anonymity, 44 of these satellites were at Pakistan's disposal during the conflict with India. The Western officials suggest the Chinese satellite and signals intelligence may have assisted Pakistan in monitoring Indian troop and missile movements during the air war, possibly giving Pakistan a real-time edge. The Pakistani defense minister rejected the claims. 'You are underestimating the ability of our armed forces,' Asif said, cautioning against downplaying Pakistan's own capabilities in electronic warfare and precision targeting. Asked directly about the use of Chinese satellite capabilities for any kind of support during the fighting, the defense chief said: 'I don't know and I don't think so … We are very advanced as far as this warfare is concerned … China's help is always, always very valuable … but this fight was Pakistani, the victory is 'Made in Pakistan'.' He also denied that Chinese personnel were able to monitor the fighting in real time or access Pakistan Air Force monitoring systems during the May 7–10 period. 'No, I don't think so they had any access. They were watching the situation very closely, as a neighbor, as a friend,' Asif said. 'But I'll again assert that this war was fought by our boys and girls.' While Asif noted that Pakistan sourced most of its military hardware — including submarines, aircraft and weapons — from China, as well as some from Turkiye, the United States and European countries, he maintained that the actual fighting remained fully under Pakistani command. 'So, in that backdrop [of China being a major defense supplier], you can always speculate that China was very helpful to us in this conflict,' he said. 'But physical participation or participation through satellites or through other means, I don't think so.' China has been Pakistan's closest defense partner since the 1960s and the Pakistan Air Force operates a fleet of Chinese JF-10C multirole fighters, and JF-17 Thunder planes, jointly developed and assembled in Pakistan to reduce dependence on Western defense equipment. After the India standoff, Beijing is also widely reported to be fast-tracking the sale of fifth-generation J-35 stealth jets to Islamabad, potentially giving Pakistan deep-strike capabilities into Indian airspace. Asked if the J-35 jets would be delivered in 2026 as suggested in recent media reports, Asif responded: 'I think it's only in the media, you know. It's only in the media and it's good for sales, Chinese defense sales.' NUCLEAR ALERT POSTURE? A full-scale war between India and Pakistan — both nuclear powers — remains one of the most dangerous strategic flashpoints in the world. Experts have long warned that even limited, high-intensity skirmishes run the risk of unintended escalation toward nuclear war. Asked if last month's clash had triggered any consideration of moving to a nuclear alert posture, Asif was categorical: 'No… Absolutely, with certainty I can say that.' He also dismissed the idea that Pakistan had considered launching a broader conventional offensive across the border, saying modern warfare was no longer dependent on crossing territorial lines: 'Now you don't have to cross the border. You don't have to capture the territory. Capturing territory or crossing over... that is something which is obsolete. War is being fought now... cyber.' The defense minister also said there had been no back-channel diplomacy between Islamabad and New Delhi following the May 10 ceasefire, although military operations heads in both countries had been in contact via a hotline. And while the Pakistan-India clash may have faded from global headlines amid the ongoing crisis between Israel and Iran in the Middle East, Asif said India remained Pakistan's most pressing security concern. 'We have been on alert so we have not lowered guards, that I can confirm,' the defense minister said, particularly due to concerns Indian Prime Minister Narendra Modi could resort to fresh military action as he was under pressure from a public questioning how Pakistani forces struck military facilities deep inside the country and downed Indian jets. Modi also has domestic political pressures to manage ahead of elections in Bihar, a pivotal swing state that is crucial for both national and state-level power equations. 'Modi has internal compulsions to avenge [the May conflict] … There are elections around the corner… and his popularity has plummeted, his political opponents can smell blood, politically,' Asif said. 'That can drive him to some desperate measures, otherwise, I don't think so there is a possibility of some replay of what happened a month back.'
