China’s new energy vehicle (NEV) retail sales are expected to see a decline in April compared to March, with estimates pointing to around 900,000 units being sold. This drop in sales is likely attributed to a combination of factors, including a public holiday and unfavorable weather conditions.
According to a report by the China Passenger Car Association (CPCA), the penetration rate of passenger NEVs in China rebounded to 51.4 percent in April, with an estimated year-on-year increase of 33.24 percent. However, this figure represents a decrease of 9.18 percent from the previous month.
Overall, retail sales of passenger cars in China for April are projected to be around 1.75 million units. While this marks a 14.4 percent increase compared to the same period last year, it also represents a decline of 9.8 percent from the previous month.
Major passenger car manufacturers, accounting for 80 percent of retail sales, are aiming for a 7.1 percent year-on-year increase in sales for April. This target is approximately 10 percent lower than the target set for the previous month.
The CPCA reported that the discount rate for the overall auto market in mid-April was around 23.7 percent, slightly narrower than at the end of March. The first week of April coincided with the Qingming Festival holiday, while some regions in China experienced windy weather in the second week, negatively impacting store traffic.
Average daily retail sales of passenger cars in the first week of April were approximately 34,900 units, showing a 2.1 percent year-on-year increase but a 13.6 percent decrease from the previous month. The following weeks saw fluctuations in daily sales figures, with week two recording 43,700 units, week three at 54,500 units, and weeks four to five estimated at 85,300 units.
In related news, Tesla made significant progress in the Chinese NEV market, climbing to the third position in March from seventh place in February. This improvement was attributed to the company’s enhanced local deliveries.
Overall, the automotive market in China continues to experience fluctuations in sales figures, influenced by various factors such as holidays, weather conditions, and market dynamics. Despite the anticipated decline in NEV sales for April, the industry remains resilient and adaptable to changing circumstances.
