China’s new energy vehicle (NEV) industry is on track to achieve another milestone this month, with retail sales expected to reach a record high of 1.15 million units. This represents a 49 percent increase compared to the same period last year and a 2.4 percent increase from September. The China Passenger Car Association (CPCA) released these estimates, indicating that the NEV sector is entering its peak season.
This will mark the third consecutive month that China’s monthly retail sales of NEVs exceed 1 million units. In August and September, the figures stood at 1.03 million and 1.12 million units, respectively. The NEV penetration rate at retail is expected to be 52.3 percent in October, slightly down from 53.3 percent in September.
The CPCA is set to provide preliminary data on October NEV sales early next month, with final figures expected in the middle of the month. Major automakers, responsible for about 80 percent of passenger car sales, are targeting a 4 percent growth in retail sales for October compared to September.
Preliminary projections suggest that passenger car retail sales for October will be around 2.2 million units, marking an 8.2 percent year-on-year increase and a 4.3 percent month-on-month increase. In the first week of October, which included the National Day holiday, major automakers reported an average daily retail sales of 49,700 units, a 5.2 percent decrease year-on-year but a 2.5 percent increase from the previous month.
The second week saw a significant improvement, with average daily retail sales reaching 79,200 units, a 47.7 percent year-on-year increase and a 31.0 percent month-on-month increase. The third week recorded an average daily retail sales of 63,000 units, an 8.7 percent year-on-year increase and a 4.3 percent month-on-month increase.
As for the fourth and fifth weeks, average daily retail sales are expected to be 78,600 units (down 16.6 percent year-on-year) and 96,600 units (down 10.8 percent year-on-year), respectively. Despite the slight year-on-year decrease in the final weeks, the overall outlook for October remains positive for China’s NEV industry.
