Retail Sales of New Energy Vehicles in China Decline by 7% in Early November
From November 1 to 8, retail sales of new energy vehicles in China amounted to 219,000, decreasing by 7% year-on-year. Their share reached 74.9% of passenger car sales.
In China, from November 1 to 8, the passenger car market began the month with a weak recovery: sales of new energy vehicles declined year-on-year but significantly less than the overall auto market. Compared to the same period in October, their retail sales increased.
The China Passenger Car Association (CPCA) attributed the dynamics to a low comparison base: the holiday week in October disrupted car production and sales. The share of new energy vehicles in retail passenger car sales exceeded the previous monthly record.
Wholesale sales of new energy vehicles decreased year-on-year but surged sharply compared to October. According to CPCA data, the market is experiencing a shortage of models capable of meeting significant demand. To support supply chains and meet production and sales plans, automakers increased target shipments to dealers. This led to a rise in inventory within sales channels, while retail sales grew only slightly.
Local subsidies and manufacturer promotions at the end of the year, according to the association’s assessment, will help maintain market stability. However, the high comparison base from last year will make it difficult to reduce the annual decline, so a significant sales upturn by the end of the year is unlikely. The report also states that high global oil prices and the recent increase in domestic fuel prices, stronger than expected, have weakened demand for gasoline vehicles and accelerated the transition to electric transport.
From January to October, China exported 9.74 million vehicles, including chassis. The export value amounted to 1.16 trillion yuan.
