- Overall passenger car retail sales are expected to be around 1.75 million units, down 33.6 percent from the previous month.
- The overall market is weak, as the new round of incentives have just been announced, and consumers were in a wait-and-see mood at the beginning of the month.
China’s new energy vehicle (NEV) sales are expected to be significantly lower this month than the previous month, continuing the seasonal pattern of the past.
In January, retail sales of passenger NEVs in China are estimated at 720,000 units, up 7.22 percent year-on-year, but 44.70 percent lower than in December, according to estimates released today by the China Passenger Car Association (CPCA).
China’s auto market has a distinct seasonal pattern, with January or February usually being the lowest point of sales for the year, while December is usually the highest point of sales.
In past years, this has been due in large part to concerns over the expiration of incentives for car purchases, leading to an early release of demand at the end of the year that would otherwise have been released at the beginning of the following year.
China’s NEV penetration at retail in January is expected to be 41.1 percent, according to the CPCA. This is down from 49.4 percent in December.
The CPCA is expected to release preliminary figures for January NEV sales early next month and final figures in the middle of next month.
According to preliminary projections, overall passenger car retail sales in January are expected to be around 1.75 million units, a decrease of 14.6 year-on-year and down 33.6 percent from the previous month, according to the CPCA.
The overall market is relatively sluggish, as a new round of incentives for car purchases has just been announced and the effects are not yet visible, coupled with heavy consumer wait-and-see sentiment at the beginning of the month, the CPCA said.
Major automakers’ average daily passenger car retail sales in the first week of January were 39,900 units, down 27.8 percent year-on-year and down 37.8 percent from the same period last month.
Their average daily retail sales in the second week were 48,300 units, 15.6 percent lower year-on-year and 35.0 percent lower than the same week last month.
Average daily retail sales in the third week are expected to be 62,800 units, 26.4 percent lower year-on-year but 1.9 percent higher than the same week last month.
Average daily retail sales for the fourth week are expected to be 86,700 units, down 9.6 percent year-on-year but up 30 percent from the same week last month.
With only one working day in the fifth week, retail sales are expected to be 108,600 units, 53.6 percent lower year-on-year and 59.1 percent lower than the same period last month.
