A Look at china NEV retail sales fall 15% in first 16 days of August, outperforming broader market
- NEV retail sales totaled 399,000 units from August 1-16, with retail penetration at 63.6%.
- Overall passenger vehicle retail sales fell 22% year-on-year during the period, as high oil prices weighed on demand for gasoline vehicles.
China’s new energy vehicle (NEV) retail sales continued to decline in the first half of August, but outperformed the broader auto market as conventional gasoline vehicle demand continued to collapse.
Retail sales of passenger NEVs in China totaled 399,000 units from August 1-16, down 15% year-on-year but up 1% from the same period last month, according to data released Wednesday by the China Passenger Car Association (CPCA).
Year to date, China’s cumulative retail sales of passenger NEVs stood at 6.067 million units, down 13% year-on-year.
NEVs accounted for 63.6% of passenger vehicle retail sales from August 1-16, remaining at a high level.
Wholesale sales of passenger NEVs by Chinese automakers totaled 425,000 units from August 1-16, down 3% year-on-year but up 6% from the same period last month. Year-to-date NEV wholesale sales reached 8.673 million units, up 7% year-on-year.
NEV wholesale penetration reached 72.9% during the period, up from 70.9% in the first week of August.
Overall passenger vehicle retail sales in China totaled 628,000 units from August 1-16, down 22% year-on-year and roughly flat from the same period last month. Year-to-date retail sales totaled 10.801 million units, down 20% year-on-year.
In the first week of August, from August 1-9, average daily passenger vehicle retail sales were 35,236 units, down 22% year-on-year and 3% from the same period in July.
In the second week, from August 10-16, average daily retail sales were 44,408 units, down 22% year-on-year but up 2% from the same period in July.
Overall wholesale sales by Chinese passenger vehicle manufacturers totaled 583,000 units from August 1-16, down 25% year-on-year and 1% from the same period last month. Year-to-date wholesale sales totaled 15.393 million units, down 6% year-on-year.
Average daily wholesale sales from August 1-9 were 30,616 units, down 24% year-on-year but up 2% from the same period last month.
From August 10-16, average daily wholesale sales were 43,974 units, down 26% year-on-year and 3% from the same period last month.
Production of conventional gasoline vehicles continued to collapse. In the first week of August, China produced 137,000 gasoline-powered light vehicles, down 60% year-on-year and 42% from the same period last month.
Combined production of hybrid and plug-in hybrid vehicles totaled 73,000 units in the first week of August, down 33% from the same period a year earlier and 35% from the same period last month.
The CPCA said high oil prices are currently a major factor weighing on the auto market. International oil prices rose amid volatility in July as shipping through the Strait of Hormuz was disrupted, prompting China to raise domestic refined fuel prices twice by a combined nearly 985 yuan per metric ton ($145).
The increases have significantly raised the operating and maintenance costs of gasoline vehicles, continuing to dampen consumers’ willingness to buy them and weakening demand for conventional gasoline vehicles. NEV prices remained stable over the same period, while consumers showed strong wait-and-see sentiment.
The CPCA expects the market to improve in the second half of August. The start of the school season, strong demand for small electric vehicles, ample funding for trade-in subsidies, and a wave of new model launches at the Chengdu Auto Show toward the end of the month are expected to support a recovery in auto sales.
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