China’s Passenger Vehicle Retail Sales Estimated to Reach 1.75 Million Units in January 2025: CPCA
Beijing (Gasgoo)- According to preliminary estimates by the China Passenger Car Association (CPCA), China’s passenger vehicle retail sales are projected to hit around 1.75 million units in the first month of 2025. This figure represents a 14.6% year-on-year decrease and a 33.6% decline compared to December 2024.
New energy passenger vehicle (NEPV) retail sales are forecasted to reach 720,000 units in the month, representing approximately 41.1% of the market share.
It’s important to note that when referring to passenger vehicles, we are specifically talking about cars, SUVs, and MPVs produced locally on the Chinese mainland.
The early timing of the Chinese New Year in 2025 has led to fewer working days in January. The expiration of previous policies aimed at boosting auto consumption at the end of 2024, coupled with the introduction of new incentives whose effects are still unfolding, have contributed to a sluggish consumer sentiment at the start of the month.
Nevertheless, with the peak in pre-holiday sales and the gradual impact of new policies, market activity is expected to pick up. The penetration of NEPVs may fluctuate seasonally, while demand for traditional fuel-powered vehicles and luxury cars could provide stability to the market.
During the first week of January, China’s daily passenger vehicle retail sales averaged 39,000 units, marking a 27.8% year-on-year decrease and a 37.8% drop from December 2024. The second week saw a slight recovery, with daily sales increasing to 48,300 units, still down by 15.6% year-on-year and 35% month-on-month.
As the holiday drew closer in the third week, daily retail sales of passenger vehicles in China improved to 62,800 units, showing a 26.4% year-on-year decline but a 1.9% increase from the previous month.
The fourth week, with six working days, is expected to witness a concentrated surge in deliveries, with daily sales projected to reach 86,700 vehicles. However, the final week, with only one working day, is anticipated to see daily sales drop to 108,600 units.
