China’s new energy vehicle (NEV) sales are projected to see a significant drop this month, following the typical seasonal trend in the market. According to the China Passenger Car Association (CPCA), retail sales of passenger NEVs in China are estimated to reach 720,000 units in January, marking a 44.70 percent decrease from December.
The Chinese auto market typically experiences a lull in sales during January or February, with December being the peak month for car purchases. This trend is often attributed to concerns over expiring incentives for car purchases, prompting consumers to make their purchases earlier in the year.
In January, NEV penetration at retail is expected to be around 41.1 percent, down from 49.4 percent in December. The CPCA is set to release official figures for January NEV sales in the coming weeks.
Overall, passenger car retail sales in January are forecasted to be approximately 1.75 million units, representing a 33.6 percent decrease from the previous month. The market is currently experiencing a slowdown, as new incentives for car purchases have recently been announced, and consumers are adopting a cautious approach before making any buying decisions.
Major automakers have reported a decline in average daily passenger car retail sales. In the first week of January, sales were down 27.8 percent year-on-year, while the second and third weeks also saw decreases in sales compared to the previous month.
Despite the overall decrease in sales, some automakers have managed to maintain steady sales figures. Nio, Onvo, Tesla, and BYD have reported notable numbers in terms of EV insurance registrations, indicating a continued interest in electric vehicles in the market.
As the month progresses, it will be interesting to see how the Chinese auto market evolves and whether the new incentives will have a positive impact on consumer behavior. Stay tuned for more updates on the latest trends in the automotive industry on CnEVPost.
