- The broader passenger vehicle market also faced downward pressure in early April, with first-week retail sales sliding 29% year-on-year.
- The Tomb-Sweeping Day holiday and sluggish consumer sentiment driven by macroeconomic factors dragged down overall auto market performance.
Retail sales of passenger new energy vehicles (NEVs) in China saw a significant year-on-year decline in the first week of April, reflecting a muted overall market performance.
During the April 1-6 period, retail sales of passenger NEVs in China totaled 86,000 units, according to data released Wednesday by the China Passenger Car Association (CPCA).
That represents a 24% drop from the same period last year, though it is up 3% from the same period in March.
The broader passenger vehicle market also faced downward pressure in early April. Total retail sales of passenger cars in China stood at 149,000 units during the period, tumbling 29% year-on-year and 20% from the same period last month.
The recent market weakness was primarily affected by the Tomb-Sweeping Day holiday, which shortened the actual effective sales and license plate registration time, the CPCA said.
In addition, the end-of-quarter sales push in the first quarter also slowed the sales pace in early April.
The Tomb-Sweeping Day holiday fell on April 4-6 both this year and last year, with each period including one working day.
Macroeconomic pressures have further weighed on car-buying demand. High international oil prices and a pullback in the domestic stock market have jointly dampened consumer enthusiasm for purchasing vehicles, with a wait-and-see sentiment continuing to spread, according to the CPCA.
Still, NEV market share remains at historically high levels. In the first week of April, the retail penetration rate of passenger NEVs reached 57.7%, indicating that the trend toward automotive electrification remains solid.
On the wholesale front, passenger NEV wholesales in the first week of April were 73,000 units, down 39% year-on-year and 14% lower than the same period last month.
The wholesale penetration rate for NEVs stood at 47.5%, notably lower than the retail penetration rate. This indicates that automakers are focusing more on destocking rather than pushing inventory to dealers, highlighting their cautious stance on the current market.
Policy support from the Chinese government continues to play a driving role. Data from China's Ministry of Commerce showed that a total of 1.408 million subsidy applications were received for the auto trade-in program in the first quarter.
With the effects of the Beijing Auto Show emerging in late April alongside a concentrated launch of new models, retail sales are expected to gradually stabilize and recover, with the pace of decline anticipated to narrow, the CPCA projected.
