China’s new energy vehicle (NEV) sales in China are expected to bounce back in March, with the China Passenger Car Association (CPCA) forecasting retail sales to reach 1 million units. This represents a significant increase from the 686,000 units sold in February and a 39.18 percent increase from the same period last year.
The rebound in NEV sales is attributed to the waning impact of the Chinese New Year holiday and the gradual fading of car purchase incentives from the previous year. The overall retail sales of passenger cars in March are projected to be around 1.85 million units, marking a year-on-year increase of 9.1 percent and a month-on-month increase of 33.7 percent.
Major passenger car manufacturers, who account for 80 percent of retail sales, have set a retail target for March that is 8.5 percent higher compared to the same period last year. The discount rate in the car market stood at 23.4 percent in mid-March, remaining stable from the end of February.
The average daily retail sales of passenger cars in China saw a steady increase throughout March. In the first week, sales averaged 40,400 units per day, a 13.9 percent year-on-year increase. By the second week, sales jumped to 58,300 units per day, marking a 34.3 percent year-on-year increase. The third week is expected to see daily sales of 62,900 units, a 24.6 percent year-on-year increase.
However, retail sales in the fourth week are projected to average 79,800 units per day, representing a 10.1 percent year-on-year decrease and a 13.5 percent month-on-month decrease. Despite this slight decline, the overall outlook for NEV and passenger car sales in China remains positive for the month of March.
