China’s new energy vehicle (NEV) retail sales are on an upward trajectory in May, with an expected 22.99 percent year-on-year increase, according to the China Passenger Car Association (CPCA). The retail sales of passenger NEVs in China are projected to reach 980,000 units this month, representing a penetration rate of around 52.9 percent.
This growth comes after a sequential decline in April, with many car companies offering discounts during the Labor Day holiday at the beginning of the month. Additionally, several local auto shows were held, stimulating demand for car purchases, as reported by the CPCA.
Overall, China’s passenger vehicle retail sales in May are expected to be around 1.85 million units, marking an 8.5 percent year-on-year increase and a 5.4 percent increase from the previous month. The CPCA noted that passenger car makers accounting for 80 percent of retail sales targeted an 8 percent year-on-year increase in sales for the month.
The discount rate for the overall vehicle market in mid-May was approximately 24.8 percent, up 1.1 percentage points from the end of April. Daily retail sales of passenger cars in the first week of May averaged 41,700 units, down 10.9 percent year-on-year but up 19.3 percent from the previous month.
In week 2, daily retail sales of passenger cars increased to 60,900 units, a 30.2 percent year-on-year increase and a 44.2 percent increase from the previous month. Week 3 saw daily retail sales of 51,200 units, a 13.9 percent year-on-year increase. Week 4 is estimated to have daily retail sales of 57,100 units, an 18.7 percent year-on-year increase but a 13.4 percent decrease from the previous month. Week 5 is forecast to have daily retail sales of 86,400 units, a 6.2 percent year-on-year decrease and a 21.7 percent decrease from the previous month.
Overall, the NEV market in China is showing resilience and growth, with May expected to be a strong month for retail sales. The continued focus on new energy vehicles and the increasing penetration rate reflect the ongoing shift towards sustainable transportation options in the country.
