New data from the China Passenger Car Association (CPCA) reveals a significant year-on-year decline in passenger car retail sales for the first 27 days of September. The market saw 1.258 million units retailed, marking a 29% drop compared to the same period last year. However, there was a slight month-on-month increase of 1%.
Looking at wholesale figures, manufacturer dispatches were also down, reaching 1.474 million units, a 30% decrease year-on-year and a 12% drop compared to the previous month. Year-to-date retail sales stand at 12.973 million units, a 22% decline, while year-to-date wholesale figures are 18.657 million units, down 7%.
New Energy Vehicles Offer a Brighter Picture
In contrast to the overall market trend, the new energy vehicle (NEV) segment demonstrated more resilience. From September 1st to 27th, NEV retail sales reached 827,000 units, a 20% decrease year-on-year but a 2% increase compared to the previous month. Year-to-date NEV retail sales total 7.501 million units, down 13%.
On the wholesale side, NEV manufacturers dispatched 1.032 million units during the same period, a 11% decrease year-on-year and a 7% decrease month-on-month. However, the cumulative wholesale volume for NEVs this year has seen positive growth, reaching 10.81 million units, a 7% increase year-on-year.
NEV Penetration Rate Strong
The increasing significance of NEVs in the market is further highlighted by their penetration rates. For the period of September 1st to 27th, the NEV retail penetration rate stood at an impressive 65.7%. At the manufacturer wholesale level, the NEV penetration rate reached 70%.
Weekly Performance Fluctuations
The CPCA also provided a breakdown of the weekly performance:
- First week of September: Daily retail sales averaged 35,000 units, a 19% decrease year-on-year and a 1% decrease month-on-month.
- Second week of September: Daily retail sales averaged 44,000 units, down 26% year-on-year but up 8% month-on-month.
- Third week of September: Daily retail sales averaged 52,000 units, down 19% year-on-year but up 14% month-on-month.
- Fourth week of September: Daily retail sales averaged 54,000 units, a significant 42% decrease year-on-year and a 13% decrease month-on-month.
These figures suggest a challenging environment for the broader automotive market in September, with significant year-on-year declines. Nevertheless, the strong and growing penetration of new energy vehicles indicates a clear shift in consumer preference towards electric and hybrid options, even amidst broader market headwinds.
