China's car exports are growing rapidly amid falling domestic sales and declining profitability

China's car exports have surged again, becoming a lifeline for automakers who have been stranded by a downturn in the domestic market caused by rising fuel prices and low consumer confidence, Bloomberg reports.

According to the Chinese Passenger Car Association (PCA), exports increased by 88% in July compared to the same period last year, to 918,000 units. This means that 41% of cars produced in the country were shipped abroad, compared with 21% a year ago.

The steady exports contrast with the general decline in retail sales of passenger cars, which fell by 21% to 1.46 million units in July. Although the main factor was a 41% drop in sales of vehicles with internal combustion engines, sales of vehicles powered by new energy sources, including both hybrids and battery-powered electric vehicles, decreased by only 3.9%. According to the PCA, cars powered by new energy sources accounted for a record 65% of sales.