China’s New Energy Vehicle Retail Sales to Reach 450,000 units in July

The China Passenger Car Association (CPCA) said on July 22 that according to the data of manufacturers’ retail target survey and weekly sales trend in July, the retail sales volume of passenger cars in July is estimated to be 1.77 million units, a year-on-year increase of 17.8%. Meanwhile, the retail sales volume of new energy vehicles was 450,000 units, up 102.5% year-on-year.

In June, as the epidemic is being managed and contained, a consumption report detailing post-epidemic consumption trends was released, the purchase tax reduction policy was superimposed, and local subsidies were distributed for a short period of time which meant that the market showed a bit of a rebound. In June, the retail sales of passenger cars were 1.944 million units, a year-on-year increase of 22.7%. The retail sales of new energy vehicles were 531,000 units, up 130.6% year-on-year, and the penetration rate reached 27.3%.

As for the trend of the automobile market in July, the CPCA believes that the national epidemic situation was generally stable in July, with the supply chain and vehicle production operating normally. Vehicle manufacturers such as NIO, Tesla and GAC Aion have further increased their production capacity.

Moreover, after the local consumption policies expired at the end of June, the government continued to carry out the policies or started to introduce the second round of subsidies, continuing to support the automobile market.

In mid-July, the overall market discount rate of passenger cars was about 13.7%, which was the same as last month. Under the pressure of the whole year’s sales task, manufacturers continued to exert their strength. According to the retail target survey in July, the sales volume of manufacturers accounted for about 80% of the total market and increased by double digits year-on-year.

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The year-on-year increase of retail volume of major manufacturers in the first and second weeks of July were each 16%. With the continuation of local consumption policies, the sales volume is expected to climb steadily in the third week, with a year-on-year increase of about 19%. Considering the low base affected by chip shortage in the same period last year, it is estimated that the average retail sales on the fourth week will increase about 17% year-on-year.