Car sales in China increased by 14.4% in March compared to the previous year, driven by government-subsidized trade-ins that supported demand for electric vehicles (EVs) and plug-in hybrids. The China Passenger Car Association (CPCA) reported that passenger vehicle sales reached 1.97 million units in March and rose by 6.1% to 5.18 million units in the first quarter of the year. In March, EVs and plug-in hybrids accounted for 50.4% of total sales, surpassing gasoline cars. The shift towards EVs was supported by a program similar to the U.S. "cash-for-clunkers" initiative, offering higher subsidies and covering 2 million cars by early this year. Despite concerns about job security and income, Chinese consumers showed interest in EVs, with companies like BYD outperforming global competitors like Tesla. BYD initiated a smart EV price competition in February, encouraging other automakers to prioritize smart driving technology in their vehicles. However, a recent fatal crash involving Xiaomi's SU7 sedan raised doubts about the safety of smart driving systems. Xiaomi, looking to boost EV deliveries, raised its target to 350,000 units by 2025 in mid-March. On the other hand, car exports from China declined by 8% in March, following an 11% increase in February.