What to Know About china’s NEV retail down 17% in first week of August, penetration slips to 61.6%
- China’s overall passenger vehicle retail sales were 317,000 units on August 1-9, down 22% year-on-year.
- NEV wholesale penetration reached 70.9%.
China’s new energy vehicle (NEV) retail sales remained weak at the start of August, with the overall auto market still at a low level.
Passenger NEV retail sales were 195,000 units on August 1-9, down 17% year-on-year and 4% from the same period last month, according to data released by the China Passenger Car Association (CPCA) on Thursday.
China’s cumulative NEV retail sales so far this year were 5,864,000 units, down 13% year-on-year.
The NEV retail penetration rate was 61.6 percent, down from July’s record 65.1%.
China’s passenger vehicle retail sales in the same period were 317,000 units, down 22% year-on-year and 3% from the same period last month. Cumulative retail sales so far this year were 10,490,000 units, down 20% year-on-year.
The pace of the market’s recovery has been slow, with multiple macro and industry factors combining to create a stable pattern at a low level, the CPCA said.
International oil prices climbed in July, and domestic refined fuel prices were raised in two rounds by a combined nearly 985 yuan ($145) per ton, pushing up the cost of car ownership and continuing to weigh on willingness to buy fuel vehicles.
NEV prices have been stable recently, and consumers are strongly inclined to wait and see, the CPCA said.
The wholesale side was relatively resilient. NEV wholesale volume was 195,000 units on August 1-9, down 5% year-on-year but up 5% from the same period last month.
The NEV wholesale penetration rate reached 70.9 percent, reflecting continued strength in exports. Cumulative NEV wholesale volume so far this year was 8,443,000 units, up 7% year-on-year.
Passenger vehicle wholesale volume was 276,000 units, down 24% year-on-year but up 2% from the same period last month. Many major automakers took extended summer heat breaks in early August, slowing the pace of fuel vehicle shipments, the CPCA said.
Consumer confidence is cautious, and there is strong hesitation over big-ticket auto purchases, the CPCA said.
Still, the association expects conditions to improve in the second half of August. The back-to-school season is approaching, demand for small electric vehicles is strong, funding for trade-in subsidies is ample, and local policies are gradually loosening.
The auto market is in a bottoming-out phase in August, and the decline in the passenger vehicle market will steadily narrow, laying the groundwork for the traditional peak season in September and October, the CPCA said.
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