On February 16, Secretary-General of the China Passenger Car Association (CPAC) pointed out that part of the car demand in this January had been overdrawn in last December due to the removal of halved purchase tax on passenger vehicles and NEV subsidies. As a result, the car market this January was extremely sluggish.
China Association of Automobile Manufacturers (CAAM) also stated that the overall car sales fell steeply in January, when the business was mostly halted during the Chinese New Year holiday. At the same time, insufficient domestic demand will delay the recovery of automobile consumption, thus it is expected that the terminal car market will be dismal in the first quarter.
The domestic total sales passenger cars in January recorded 1.47 million vehicles, down 35.2% MoM and down 32.9% YoY.
According to estimates, the overall inventory of passenger vehicles at auto dealers was about 2.3 million units at the end of January.