Chinese are buying fewer cars (but more EVs). Here’s why

Car sales in China have been declining for the fifth consecutive month, with overall sales falling but new-energy vehicle sales rising. While electric vehicle sales are increasing, the pace is not as fast as expected. Factors contributing to the overall decline in sales include falling customer confidence, preference for other high-value purchases, and a shift away from internal combustion engine vehicles. However, there is hope as EV sales are on the rise, with manufacturers like BYD and Tesla leading the way. Despite challenges, there are positive signs like an increase in car exports and government subsidies for NEVs.