CPCA expects China’s Jan NEV retail sales to be 800,000 units, 15.3% lower than Dec

China’s passenger car retail sales are estimated to be around 2.2 million units in January, down 6.5 percent from December.

China’s new energy vehicle (NEV) sales are expected to decline significantly this month from December, mainly due to seasonal factors.

In January, retail sales of passenger NEVs in China are expected to be around 800,000 units, up 141.3 percent year-on-year, but down 15.3 percent from December, according to estimates released by the China Passenger Car Association (CPCA) last night.

The decline is in line with regular seasonal patterns, the CPCA said. January is usually a low point for auto sales in China, with NEV retail sales having previously seen five consecutive months of sequential growth.

China’s passenger NEV retail sales were a record 946,000 units in December, up 47.3 percent year-on-year, with a penetration rate of 40.1 percent, the CPCA said yesterday. The retail sales figure was revised slightly upward from the 945,000 units it announced earlier this month.

The CPCA is expected to release preliminary figures for January NEV sales early next month and final figures in the middle of next month.

Survey shows that major automakers, which contribute about 80 percent of passenger car sales, lowered their retail targets by 5 percent at the beginning of January from the previous month, the CPCA said.

Based on preliminary projections, China’s passenger car retail sales in January would be around 2.2 million units, 6.5 percent lower than in December, and up 70.2 percent year-on-year, the CPCA said.

This means that NEV penetration at retail is expected to be around 36.4 percent in January, lower than in December.

The overall discount rate in China’s passenger car market stood at about 20.4 percent in early January, slightly widening from 19.9 percent at the end of December, according to the CPCA.

Some carmakers did not extend the discounts they offered in late December, but some offered new discounts ahead of the Chinese New Year, the CPCA said.

Major automakers averaged 54,000 daily retail sales of passenger cars in the first week of January, up 21.1 percent from a year earlier and up 13.7 percent from the same period in December.

Average daily retail sales in the second week were 58,500, up 15.1 percent year-on-year and flat from the same period last month.

Average daily retail sales for the third week are expected to be 62,900, up 155.4 percent year-on-year, but 17.5 percent lower than the same period last month.

Average daily retail sales for the fourth and fifth weeks are expected to be 97,200 units, up 115.1 percent year-on-year but down 9.7 percent from the same period last month.

China EV insurance registrations for week ending Jan 14: Nio 1,700, Xpeng 1,400, Li Auto 6,800, Tesla 7,400

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