China’s annual locally-made passenger vehicle retail sales likely to grow 5.2% YoY in 2023: CPCA

Shanghai (Gasgoo)- China's domestic passenger vehicle ("PV") retail sales are anticipated to reach 2.27 million units in December 2023, which should grow 9.3% from the previous month and rose 4.8% from the previous year, according to the China Passenger Car Association ("CPCA").

Of the PVs retailed in China in December, around 940,000 units were expected to be new energy vehicles (NEVs, referring to battery electric vehicles and plug-in hybrid electric vehicles), representing a 11.8% month-on-month (MoM) growth and a 46.6% year-on-year (YoY) leap, and also indicating a 41.4% penetration rate.

For clarity, the passenger vehicles mentioned in this report only refer to cars, SUVs, and MPVs locally produced in China.

The CPCA added that China's passenger vehicle retail sales are expected to hover around 21.62 million units through 2023, demonstrating a steady 5.2% year-on-year growth. The whole-year new energy vehicle retail volume is estimated at approximately 7.75 million units, marking a year-on-year jump of 36.5%, and achieving a penetration rate of 35.8%, an 8-percentage point increase from the previous year.

In early December, China's automobile market exhibited moderate performance. According to the CPCA's data, in the first week of the month, major manufacturers achieved an average daily retail of 47,500 units, witnessing an 8.3% increase month-on-month and a 6.8% year-on-year growth. Moving into the second week, manufacturers intensified efforts to meet annual targets, achieving a daily retail average of 66,800 units, reflecting a 2.0% increase over the same period of last year. The lower-than-expected growth was mainly due to the extreme weather conditions impeded footfall growth, said the association.

In the third week of December, additional incentives from manufacturers rejuvenated market dynamics, projecting an anticipated daily sales volume of 75,700 units, indicating a substantial 25.9% month-on-month surge and a marginal 0.6% year-on-year growth. For the fourth week, the market still holds potential for a significant sales push, with an estimated daily retail of 114,300 units, representing a month-on-month decline of -15.3% but a year-on-year growth of 8.3%.