New energy vehicles projected to take up 51.9% of China’s passenger vehicle retail sales in Dec. 2024: CPCA

Shanghai (Gasgoo)- China's domestic passenger vehicle retail sales are projected to reach approximately 2.7 million units in December 2024, reflecting a year-on-year growth of 14.8% and a month-on-month increase of 11.4%, according to preliminary estimates conducted by the China Passenger Car Association ("CPCA").

Of those, new energy vehicle (NEV) sales are expected to account for around 1.4 million units in December, representing a penetration rate of 51.9%.

The first week of December saw a robust market start, with average daily retail sales of 62,700 units—up 32.1% year on year and 10.6% month on month. The momentum continued into the second week, with daily sales averaging 83,000 units, reflecting a 35.5% year-on-year jump and a 16.5% rise from the previous month. The third week is expected to maintain this upward trend, with estimated daily retail sales of 91,400 units, up 16.4% year on year and 19.8% month on month.

Due to the year-end expiration of the subsidy policies for vehicle renewal and trade-ins, December's consumer shopping heat have shifted earlier compared to previous years. Consequently, the fourth week's daily sales are projected to average 108,600 units, a slight decrease of 1.7% year-on-year and 5.8% month-on-month.

The CPCA commented that the strong start to December's car market is partially attributed to manufacturers intensifying efforts to meet annual targets as year-end approaches, coupled with the impending expiration of subsidies providing a significant boost to sales. Additionally, with the 2025 Chinese New Year holiday falling in late January, some pre-holiday vehicle purchases are being advanced to December, further stimulating demand.