China’s passenger vehicle new energy vehicle (NEV) sales are on track to continue growing year-on-year in July, according to estimates released by the China Passenger Car Association (CPCA). However, there is expected to be a decline from June as seasonal factors come into play.
The CPCA predicts that NEV retail sales in China for July will reach around 1.01 million units, marking a 14.64 percent increase compared to the same period last year. Despite this year-on-year growth, there is a 9.09 percent decrease from the previous month.
Overall passenger car retail sales in China are estimated to be approximately 1.85 million units in July, reflecting a 7.6 percent increase compared to the previous year but an 11.2 percent decline from June.
The early release of consumer demand in June, coupled with high-temperature holidays taken by many automakers in July, has contributed to this expected slowdown in sales. Automakers and dealers made efforts to meet their half-year targets by releasing consumption potential ahead of schedule, leading to a period of adjustment in production and sales.
In July 2024, China’s passenger car NEV retail sales were 881,021 units, demonstrating a 37.44 percent year-on-year increase and a 2.88 percent month-on-month growth. This year, passenger car manufacturers representing 80 percent of retail sales have set their retail targets 6 percent higher than the previous year.
Promotional activities and discounts in the Chinese car market have stabilized, with an average discount rate of around 25 percent at the beginning of July. Daily retail sales of passenger vehicles in the first four weeks of July showed fluctuations, with year-on-year increases but month-on-month declines.
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