(Yicai Global) May 10 -- China’s car sales fell by the most in two years last month amid a resurgence of Covid-19 in the world’s biggest auto market.

Passenger vehicle sales fell 35.5 percent in April from a year earlier to 1.042 million units, according to data released by the China Passenger Car Association today. That was the steepest decline since March 2020.

Still, the market is expected to recover somewhat this month thanks to auto part supplies starting to pick up and the release of pent-up consumer demand from March and April, the CPCA added. But May’s sales are still likely to be less than a year earlier, it said.

Considering the auto industry’s contribution to China’s gross domestic product and employment, the CPCA called on the authorities to roll out policies to boost spending such as making car purchases tax deductible.

Due to the suspension of auto parts supplies and vehicle production in many regions, including Shanghai and Changchun, SAIC Motor’s sales fell 60 percent in April to 166,552 units, the CPCA’s data showed. Chang’an Auto’s fell 43 percent to 115,700, and Great Wall Motor’s fell 41 percent to 53,777.

But BYD’s passenger car sales surged 313 percent to 106,000, ranking it first among major automakers.

Last month, new energy vehicle sales surged 78 percent to 282,000, for a market share of 27 percent. But fortunes were mixed. Nio delivered 5,074 new NEVs, down almost 29 percent, and Li Auto sold 4,167, down 25 percent, while Leapmotor had sales of 9,087, a 228 percent gain.

Owing to lower production, China exported 91,000 passenger cars last month, down 17 percent from a year ago. NEVs accounted for 8.3 percent of that, or 7,600 units.

Editor: Tom Litting