Beijing subsidies help lift passenger car sales
Shenzhen — China’s car sales in April rose for a third month, up 14.8% from a year earlier, as government-subsidised auto trade-ins mitigated the affect of US tariffs on consumer sentiment.
Passenger vehicle sales totalled 1.78-million units last month and for the first four months of 2025 were up 8.2% from the corresponding period a year earlier at 6.97-million units, data from the China Passenger Car Association showed on Sunday.
Sales of electric vehicles and plug-in hybrids, known collectively as new energy vehicles, increased 33.9% year on year to make up 50.8% of total car sales last month. Reuters
China’s factory-gate prices plummet in April
Beijing — China’s factory-gate prices posted the steepest drop in six months in April while consumer prices fell for a third month, underlining the need for more stimulus as policymakers grapple with the economic toll from a trade war with the US.
A prolonged housing market downturn, high household debt and job insecurity have hampered investment and consumer spending, keeping deflationary pressures alive. Now, the economy is also facing increasing external risks from trade barriers.
The producer price index dropped 2.7% in April year on year, worse than a 2.5% decline in March but was less than economists’ forecast for a 2.8% fall, National Bureau of Statistics data showed on Saturday.
“China still faces persistent deflationary pressure,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Reuters
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