China's April NEV retail sales continue to fall, while penetration tops 60% for first time

• China's BEV retail sales rose 2.4% year-on-year in April, while PHEV sales plunged 25.2%.
• NEVs contributed to more than 50% of China's auto exports for the first time.

China's retail sales of new energy vehicles (NEVs) continued to decline last month, but the NEV penetration rate hit a record high as traditional internal combustion engine vehicles suffered a steeper drop.

China's NEV retail sales stood at 849,000 units in April, down 6.8% year-on-year, marking the fourth consecutive month of year-on-year decline, according to data released by the China Passenger Car Association (CPCA) on Monday.

Compared to March, retail sales edged down 0.3%. The NEV retail figure for March was revised by the CPCA to 852,000 units from the previously reported 848,000 units.

China's overall passenger car market performed worse in April, with retail sales at 1,384,000 units, down 21.5% year-on-year, marking the seventh consecutive month of decline. This represented a 16.0% drop month-on-month.

The divergence in sales trends pushed the NEV retail penetration rate to 61.4% in April, breaking through the 60% mark for the first time.

The core reason for the decline in domestic passenger car retail sales is the collapse of fuel vehicle sales, with the pace of electrification exceeding expectations, the CPCA said.

Retail sales of battery electric vehicles (BEVs) in China reached 579,000 units in April, up 2.4% year-on-year and flat compared to March.

Retail sales of plug-in hybrid electric vehicles (PHEVs) were 192,000 units, down 25.2% year-on-year and 3.5% lower than in March.

Retail sales of extended-range electric vehicles (EREVs) stood at 79,000 units, down 11.1% year-on-year, but up 6.4% from March.

Hybrid vehicles, including PHEVs and EREVs, recorded retail sales of 271,000 units in April, down 21.9% year-on-year and 3.2% lower than in March.

Chinese domestic brands accounted for a 69.6% retail share of the overall passenger car market in April, up 4 percentage points year-on-year, and achieved a staggering 80.1% retail penetration rate in the NEV sector.

Meanwhile, overseas markets are emerging as a core growth engine.

China's passenger car exports reached 769,000 units in April, surging 80.7% year-on-year and 11.8% month-on-month.

NEV exports in April stood at 406,000 units, up 111.8% year-on-year and 18.3% month-on-month.

NEVs accounted for 52.7% of total exports, surpassing the 50% mark for the first time.