China’s new energy passenger vehicle retail sales likely to soar 47.3% YoY: CPCA

Shanghai (Gasgoo)- China's domestic passenger vehicle retail sales are projected to reach approximately 2.1 million units in September 2024, reflecting a year-on-year growth of 4% and a month-on-month increase of 10.1%, according to the China Passenger Car Association ("CPCA"). Of those, new energy vehicle (NEV) sales are expected to account for around 1.1 million units, representing a 47.3% surge compared to last year and a 7.3% rise from the previous month. The penetration rate for NEVs is estimated at 52.4%.

For clarity, the passenger vehicles hereby refer to the cars, SUVs, and MPVs locally produced in the world's largest auto market.

Retail performance showed strong momentum in September. In the first week, China's daily average passenger car retail sales hit 48,400 units, up 10.5% year-on-year and 5.4% from August. The second week, which included six full working days leading up to the Mid-Autumn Festival, saw daily sales climb to 62,900 units—a 26.2% year-on-year increase and 17.8% higher than the previous month. The third week, including the holiday period, recorded an average of 71,400 units in daily sales, boosted by a surge in orders and deliveries, representing a 19.5% year-on-year rise and a significant 29.8% month-on-month increase.

Looking ahead, the fourth week of September is expected to see daily sales reach around 96,500 units as pre-National Day holiday deliveries stabilize, which is likely to be 14.4% lower from the year-ago period.

The CPCA commented that applications for vehicle scrappage and replacement subsidies in China have risen sharply since August, with strong demand continuing into September. By September 14, over one million applications for these subsidies had been submitted nationwide. As of September 19, nearly all provinces had introduced and implemented vehicle replacement policies, offering substantial financial incentives. These measures are expected to provide fresh impetus for growth in the automotive market, driving further sales in the coming months.