In June, China's passenger car sales soared to 2.084 million units, marking an 18.1 percent increase compared to the same month last year and a 7.6 percent rise from May. This significant uptick is attributed to robust government support and a strong demand for new-energy vehicles, as reported by the China Passenger Car Association (CPCA) on Tuesday.

The surge in sales is largely due to the expanded rollout of large-scale equipment upgrades and trade-in programs for consumer goods initiated by the government. These policies have generated a notable 'policy dividend' that has effectively stimulated market demand.

Experts in the automotive sector emphasize that the growth of passenger vehicle sales is driven by favorable government policies and an enhanced sense of market confidence among consumers. The enthusiasm displayed by consumers remains notably high, signaling a positive outlook for the automotive market.

Government-led initiatives, including vehicle scrappage and trade-in programs, have proven effective in boosting growth within the auto market. According to Cui Dongshu, secretary-general of the CPCA, new-energy vehicles continue to perform exceptionally well, while traditional fuel-powered vehicles are also regaining momentum following recent market adjustments.

In terms of exports, China's passenger vehicle sector demonstrated remarkable resilience in June, with a total of 480,000 units exported, including complete vehicles and completely knocked down kits. This figure represents a 23.8 percent year-on-year increase. For the first half of the year, exports reached 2.479 million units, reflecting a 6.8 percent growth compared to the same period last year.

Specifically, new-energy vehicle exports reached 198,000 units in June, showcasing an impressive year-on-year increase of 116.6 percent. NEVs accounted for 41.1 percent of total passenger vehicle exports for the month, an increase of 17 percentage points from the previous year, underscoring the growing acceptance and market demand for these vehicles.

The rise in NEV exports indicates the expanding market presence of China’s domestic brands, which are increasingly gaining recognition abroad. The CPCA noted that this achievement reflects the scaling advantages and heightened demand for NEVs as more domestic brands penetrate international markets.

June also saw exports of Chinese domestic brands reach 410,000 units, marking a 28 percent increase year-on-year and a 10 percent increase from May. In contrast, joint venture and premium brands experienced a decline in exports, dropping 9 percent year-on-year, with total exports of 62,000 units.

Meanwhile, sales figures for major joint venture brands reached 510,000 units in June, representing a 5 percent increase from the same month last year and a 6 percent increase from the previous month. Key players like FAW Toyota, SAIC-GM, and SAIC Volkswagen have emerged as vital contributors to overall market growth.

The recovery of joint venture automakers following last year's market adjustments, combined with the continued strong growth of domestic brands, indicates the resilience and vitality of China's automotive industry. National policies aimed at boosting consumption have led many provinces and cities to implement supportive local measures.

The positive market trends observed in June were further bolstered by the full resumption of on-site events such as auto shows, which rekindled consumer interest. As of May 31, data from the Ministry of Commerce revealed that around 4.12 million applications were submitted for vehicle trade-in subsidies, with June alone accounting for 1.23 million applications, a notable increase of 13 percent from May.