China's electric and hybrid vehicle sales growth reached an 18-month low in August as the government continues implementing measures to curb destructive price competition in the sector.

Data released by the China Passenger Car Association on September 8 showed that while electric and hybrid vehicles outsold gasoline cars for the sixth consecutive month in August, the annual growth rate decelerated to 7.5% from July's 12%. This marks the smallest increase since February 2024, when the segment experienced an 11.6% sales decline due to Chinese New Year holiday timing adjustments.

Overall automotive sales totaled 2.02 million units last month, representing a 4.9% year-over-year increase - the slowest growth pace in seven months. Export growth also moderated, declining from 25% in July to 20.2% in August.

According to China Association of Automobile Manufacturers data, extended-range hybrid vehicle sales in the Chinese market grew a modest 0.3% year-over-year in August, recovering from July's 11.4% decline. Meanwhile, plug-in hybrid vehicle sales fell 7.3% compared to the previous year, worsening from July's 0.2% decrease.

Electric vehicle manufacturer Byd Company Limited has reportedly reduced its annual sales target by up to 16% to 4.6 million vehicles this year. As Tesla Motors' largest competitor in the Chinese market, Byd Company Limited reported that its domestic sales, which account for 80% of global sales, declined for the fourth consecutive month in August and experienced its first consecutive monthly production decrease since 2020.

Li Auto's sales also fell year-over-year for the third straight month in August, affected by weakening demand for extended-range hybrid vehicles.

However, August proved to be the strongest month for local brands Geely, XPeng, and NIO in the electric and hybrid vehicle segment. Geely's sales in this category surged 95.2% year-over-year, positioning itself as Byd Company Limited's primary competitor.