This means that the penetration of NEVs at retail is expected to be 36.6 percent in June, up from 33.3 percent in May.
Passenger vehicle sales in China are expected to decline this month compared to a year ago, but the performance of new energy vehicles (NEVs) remains strong.
In June, retail sales of NEVs in China are expected to be around 670,000 units, up 26 percent year-on-year and up 15.5 percent from May, according to estimates released today by the China Passenger Car Association (CPCA).
Survey shows that automakers that contribute about 80 percent of passenger car sales are targeting retail sales growth of about 5 percent in June compared with May, the CPCA said.
According to preliminary projections, passenger vehicle sales in China were about 1.83 million units in June, up 5 percent from May but down 5.9 percent from a year earlier, the CPCA said.
The year-on-year decline was due to a high base in June last year, when China's auto market was recovering from the shock of Covid, according to the CPCA.
The CPCA had forecast several times this month that June passenger car sales would be lower than a year ago, one reason being China's halving of purchase taxes on mainstream internal combustion engine vehicles that began last June.
Today's latest estimate implies that NEVs had a penetration rate of about 36.6 percent at retail in June, up from 33.3 percent in May.
Auto market demand dropped slightly in early June, but the market warmed up with the start of the June 18 shopping spree, the release of local government subsidies and the Dragon Boat Festival, the CPCA said.
The overall discount rate in China's passenger car market was about 17.8 percent in mid-June, expanding 0.6 percent from the end of May, according to the CPCA.
Major carmakers averaged 31,100 daily retail sales in the first week of June, down 42 percent from the same period in May, mainly due to a high base of vehicle sales during last month's Labor Day holiday, the CPCA said.
Their average daily retail sales in the second week of June were 42,900 units, down 14 percent from the second week of May.
As promotions kicked off in mid-June, the car market picked up in the third week, with average daily retail sales of 57,500 units, up 21 percent from the same week in May.
In the fourth week, with the arrival of the Dragon Boat Festival holiday, average daily retail sales are expected to be 62,000 units, an increase of 26 percent over the same period in May.
In week five, average daily retail is expected to be 113,700 units, up 32 percent from the same period in May, due to the pulse of the quarter-end sales, according to the CPCA.
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