China’s new energy vehicle (NEV) market saw a significant decline in sales last month, with the Chinese New Year holiday impacting consumer activity and marking the beginning of a slow season for the industry. According to data from the China Passenger Car Association (CPCA), retail sales of passenger NEVs in China totaled 744,000 units in January, showing a 10.5 percent year-on-year increase but a notable 42.9 percent drop from December.
Breaking down the NEV sales figures, battery electric vehicles (BEVs) accounted for 430,000 units sold in January, marking a 13.3 percent increase from the previous year but a 44.5 percent decrease from the previous month. BEVs continued to be the dominant player in the NEV market, contributing 57.8 percent of all NEV retail sales.
Meanwhile, plug-in hybrid electric vehicles (PHEVs) excluding extended-range electric vehicles (EREVs) made up 33.6 percent of NEV retail sales in January, with 250,000 units sold. Although this represented a 19.3 percent year-on-year increase, there was a 40.3 percent decrease from December. EREVs, on the other hand, saw 64,000 units sold in January, contributing 8.6 percent of NEV retail sales.
Overall, retail sales of passenger cars in China, including sedans, SUVs, and MPVs, reached 1,794,000 units in January, down 12.1 percent year-on-year and 31.9 percent from December. The CPCA attributed this decline to many consumers having completed their car-buying plans before the Chinese New Year, resulting in a shorter effective sales period in January compared to previous years.
The Chinese New Year holiday, which took place from January 28 to February 4, further disrupted industrial production and consumer activity. As a result, China’s retail penetration of NEVs stood at 41.5 percent in January, marking a 9-percentage point increase from the previous year but a 7.9 percentage point decrease from December.
In terms of wholesale sales, China saw 889,000 units of passenger NEVs sold in January, representing a 27.1 percent year-on-year increase but a 41.2 percent decrease from December. The penetration rate of NEVs in wholesale transactions stood at 42.3 percent, up 9 percentage points year-on-year but down 6.9 percentage points from the previous month.
Looking at NEV exports, China exported 139,000 units of passenger NEVs in January, up 29.4 percent year-on-year and 13.9 percent from December. BEVs made up 66 percent of January’s NEV exports, with class A0 and A00 BEVs accounting for 38 percent of the total exports.
In conclusion, while January saw a decline in NEV sales in China, the market remains dynamic and resilient, with various factors influencing consumer behavior and industry performance. As the year progresses, it will be interesting to see how the NEV market evolves and adapts to changing circumstances.
