The recent decline in income for some residents following the Covid outbreak has led to an impact on consumption, and the contraction in demand has trickled down to the auto market, the CPCA said.
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From May 1-15, retail sales of passenger vehicles in China fell 21 percent year-on-year to 484,000 units, up 27 percent from the same period last month, according to data released today by the China Passenger Car Association (CPCA).
With some regions returning to normal from Covid, passenger car retail sales improved slightly, the CPCA said.
Daily retail sales of passenger vehicles in China averaged 32,000 units in the first week of May, down 21 percent year-on-year and up 29 percent from the average for the first week of April.
In the second week of May, passenger vehicle daily retail sales averaged 33,000 units, down 22 percent year-on-year and up 26 percent from the average value in the second week of April, the data showed.
Some residents have recently seen their incomes decline following the Covid outbreak, leading to an impact on consumption, and the contraction in demand has trickled down to the auto market, the CPCA noted.
Nearly 80 percent of consumers cut back on travel due to Covid controls as well as risk aversion, leaving car purchase plans delayed, according to the CPCA.
Auto dealers are seeing widespread store closures, a rapid contraction in traffic and orders, and a continued decline in sales in areas that have not seen any new cases of Covid for nearly two months, the CPCA said.
Local auto consumption stimulus policies currently in place in several cities have contributed to the market recovery, but as of now, these stimuli can only support short-term sales, and a sustainable recovery still requires strong stimulus policies, the CPCA said.
(Image credit: CPCA)
China's passenger car wholesale sales performed similarly to retail sales in the first half of May, at 458,000 units from 1-15, down 24 percent year-on-year and up 29 percent from the same period in April.
The country's auto production sites suffered from varying degrees of parts supply and logistics constraints, leading to greater losses in wholesale sales, the CPCA said.
Average daily wholesale sales of passenger vehicles in the first week of May were 28,000 units, down 17 percent year-on-year and up 14 percent from the average in the first week of April.
Average daily wholesale sales for the second week of May were 34,000 units, down 29 percent from a year ago and up 47 percent from the average for the second week of April.
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