China’s January wholesale sales of passenger NEVs are expected to be 700,000 units, up 80 percent year-on-year, but down 37 percent from December, the CPCA said.
China’s January wholesale sales of new energy vehicles (NEVs) are expected to be significantly lower than in December, as the beginning of the year is usually a low point for sales.
China’s January wholesale sales of passenger NEVs are expected to be 700,000 units, up 80 percent year-on-year, but down 37 percent from December, the China Passenger Car Association (CPCA) said in a report today.
In December, 21 manufacturers with wholesale sales of more than 10,000 passenger NEVs contributed 92.4 percent of all NEV wholesale sales, the CPCA said.
These automakers had estimated sales of 650,000 units in January, and based on last month’s structure, China’s January passenger NEV wholesale sales would be at 700,000 units, the CPCA said.
Inventories of NEVs built up in the fourth quarter bolstered January sales, but the retail pickup since mid-January has been extremely slow, the CPCA noted.
In particular, the weak performance of short- and medium-range models of pure electric vehicles (EVs) and the lackluster retail sales have led to a flat trend in wholesale sales, the CPCA said.
In China, NEVs include battery electric vehicles, plug-in hybrids, and fuel cell vehicles. Their numbers are expected to be released later this month.
Starting January 1, 2024, China’s new policy on NEV purchase tax went into effect.
For NEVs with buying dates between January 1, 2024, and December 31, 2025, they will still be exempt from vehicle purchase tax, but the exemption will not exceed RMB 30,000 ($4,200) per vehicle, according to a June 21, 2023, announcement by China’s Ministry of Finance.
The policy change is relatively smooth, however, and appears to have a limited impact on NEV sales.
The exit of the NEV subsidy in late 2022 had a greater impact in early 2023, while the passenger car market is off to a smooth start in 2024, CPCA noted.
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