Chinese car sales fell 1.1% in August to 1.92 million units, marking a fifth straight month of declines, Reuters reported on Monday, citing new data from China Passenger Car Association (CPCA). But while total car sales fell, sales of new energy vehicles (NEVs) in August rose 43% year-on-year, with 1.03 million units sold. At that level, NEV sales passed traditional internal combustion engine (ICE) cars for a second consecutive month with 53.5% of the total.

China launched a government-subsidized trade-in program earlier this year to both encourage people to switch their ICE cars for cleaner NEVs, and also to boost consumption. That program provides subsidies of up to 20,000 yuan ($2,812) for people who trade in their ICE cars for an NEV.

By Doug Young

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