China witnessed a decline in new energy vehicle (NEV) retail sales in January compared to December, as the slow season approached. According to preliminary data released by the China Passenger Car Association (CPCA), retail sales of passenger NEVs in China reached 786,000 units in January, marking a 17 percent increase year-on-year but a 40 percent decrease from the previous month.
Wholesale sales of passenger NEVs in China during January stood at 900,000 units, reflecting a 29 percent year-on-year growth but a 40 percent drop compared to December. Overall retail sales of passenger vehicles in China totaled 1.853 million units in January, showing a 9 percent decline year-on-year and a 30 percent decrease from the previous month.
The data indicates that China’s NEV retail penetration rate reached 42.42 percent in January. The automotive market in China typically experiences a sales slump at the beginning of the year, especially during the month of the Chinese New Year holiday, which fell between January 28 and February 4 this year.
Throughout January, the average daily retail sales of passenger cars in China fluctuated. In the first week of January (January 1-5), daily retail sales averaged 39,014 units, marking a 28 percent year-on-year decrease and a 38 percent drop from the previous month. The second week (January 6-12) saw average daily sales of 48,286 units, down 16 percent year-on-year and 35 percent lower than the previous month.
During the third week of January (January 13-19), average daily retail sales of passenger cars in China were 67,425 units, representing a 9 percent year-on-year increase but a 21 percent decline from the previous month. The fourth week (January 20-25) saw daily sales of 76,777 units, up 15 percent year-on-year but 20 percent lower than the previous month. Finally, in the fifth week of January (January 26-31), daily sales averaged 64,555 units, showing a 20 percent year-on-year decrease and a 38 percent drop compared to the previous month.
In terms of wholesale sales, China recorded 2.048 million units of all passenger cars in January, marking a 3 percent year-on-year decrease and a 33 percent drop from December. The average daily wholesale sales of passenger cars in China varied throughout the month, with fluctuations in year-on-year and month-on-month comparisons.
Overall, China’s automotive market experienced a slowdown in January, reflecting typical seasonal patterns and the impact of the Chinese New Year holiday. Despite the temporary decline, the NEV sector continues to show resilience and growth potential in the long run.
