Key facts
- Gasoline car prices in China have fallen due to decreased demand following an oil shock linked to the Middle East.
- Discounts on gasoline cars have nearly doubled in the first five months of the year.
- Chinese passenger car sales dropped by over 22% in May.
- EV and hybrid vehicles accounted for 62.9% of total car sales in May.
- China's crude oil imports in May were the lowest in eight years.
- Refinery run rates in China fell to an average of 66.3% in May.
Gasoline car demand in China is slumping due to higher fuel prices resulting from Middle East tensions. This has led to significant discounts on vehicles like Range Rovers, with discounts nearly doubling in the first five months of the year. Chinese passenger car sales fell over 22% in May, while electric and hybrid vehicles captured 62.9% of the market, despite a modest overall sales decline for these alternative fuel cars. Beijing has attempted to mitigate fuel price increases by using its crude oil reserves, but imports have dropped sharply, reaching an eight-year low in May. Refinery run rates have also decreased significantly.