China registers more EVs than combustion engine cars for first time

China registered more electric vehicles than combustion engine cars in April, a first for the world's largest auto market. Approximately 580,000 EVs and 560,000 combustion engine vehicles were registered, according to data from Japanese analysis firm Marklines.

This shift puts significant pressure on German automakers, who are already engaged in a fierce price war in China. BMW, for instance, drastically reduced its annual profit forecast, citing negative developments in the Chinese auto market and rising energy prices. The company now expects an operating profit margin of only 1-3% for its automotive division, down from a previous forecast of 4-6%.

"The impact of the US-Iran conflict is also showing in car purchases in China, similar to Germany," noted Beatrix Keim, head of the Center Automotive Research (CAR). "Prices are rising overall because China relies on imports of fossil fuels." This has led to higher fuel costs, prompting consumers to alter their purchasing behavior.

Earlier in the year, EV sales in China had slowed due to capped government subsidies. However, sales of combustion engine vehicles experienced a more dramatic decline, reportedly falling by over 40% by April. China aims for electric cars to become the dominant form of propulsion by 2035.

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The impact of the US-Iran conflict is also showing in car purchases in China, similar to Germany. The prices are rising overall because China relies on imports of fossil fuels.