The penetration rate of NEVs at retail in July is expected to be around 35.8 percent, up from 35.1 percent in June.
The overall performance of China's new energy vehicle (NEV) industry will be weaker in July than in June, according to the latest estimates from the China Passenger Car Association (CPCA).
In July, retail sales of NEVs in China are expected to be around 620,000 units, up 27.5 percent year-on-year but down 6.8 percent from June, the CPCA estimated figures released today show.
Survey showed that major car companies, which contribute about 80 percent of passenger car sales, had slightly lower retail targets in July compared with June, down about 5 percent from a year earlier, the CPCA said.
According to preliminary projections, China's passenger car sales are expected to be about 1.73 million units in July, down 8.6 percent from June and 4.8 percent year-on-year, the CPCA said.
This means that the penetration rate of NEVs at retail was about 35.8 percent in July, up from 35.1 percent in June.
Demand in China's auto market fell back slightly in July, but the overall performance was relatively stable and showed a normal seasonal trend, the CPCA said.
Major manufacturers' average daily retail sales in the first week of July were 30,800, down 2 percent from the same period in June.
Their average daily retail sales in the second week were 50,600, down 5 percent from the same week in June.
In the third week, average daily retail sales for the major car companies are expected to be 58,200, a 17 percent decrease from the third week of June. This is mainly due to the promotional campaigns started by car companies in mid-June, leaving the third week of last month with a high base, the CPCA said.
In the fourth week, China's auto market performed in line with a normal low season, with average daily retail sales estimated at 63,700, down 19 percent from the fourth week of June, the CPCA said.
China's macroeconomic recovery in the third quarter was slower than expected, consumer income growth was weak, and willingness to spend still needs to improve, the CPCA's report noted.
China's auto market's above-expectation performance in June was due more to policy stimulus and promotional factors, and the momentum is difficult to sustain, the report said.
In the second half of the year, local regional policies are expected to be supportive of the auto market, but it will be difficult to bring an above-expectation stimulus, the CPCA said.