- China's NEV retail sales fell 15% in early August but still made up 63.6% of passenger vehicle sales.
- NEV wholesales rose 7% year-to-date and exports are cushioning weak domestic demand.
- Mainstream gasoline vehicle production plunged 60%, as automakers shift capacity toward NEVs.
The retail sales of China’s passenger vehicles totaled 628,000 units from Aug. 1-16, down 22% year on year and broadly unchanged from the same period in July, according to CPCA data.
Passenger vehicle wholesale volume reached 583,000 units during the period, down 25% year on year and 1% from the previous month.
On a year-to-date basis, passenger vehicle retail sales totaled 10.801 million units, down 20% year on year, while wholesale volume reached 15.393 million units, down 6%.
The NEV market also contracted, but at a significantly slower pace than the broader passenger vehicle market.
NEV retail sales reached 399,000 units from Aug. 1-16, down 15% year on year but up 1% from the same period in July. NEVs accounted for 63.6% of total passenger vehicle retail sales.
Wholesale performance was relatively stronger. NEV wholesale volume reached 425,000 units during the period, down 3% year on year but up 6% from the previous month.
The wholesale penetration rate reached 72.9% and remained above 70% for a third consecutive week.
The gap between wholesale and retail volumes also suggests that automakers’ exports are continuing to offset weak domestic demand.
Year to date, NEV retail sales totaled 6.067 million units, down 13% year on year, while wholesale volume reached 8.673 million units, up 7%.
The significantly higher wholesale volume indicates that strong exports have helped cushion weaker domestic demand.
On the production side, output of conventional gasoline-powered light vehicles fell 60% year on year to just 137,000 units in the first week of August.
Production of hybrid and plug-in hybrid models totaled 73,000 units, down 33%.
As the overall market remains under pressure, conventional gasoline-powered vehicles continue to bear the brunt of the downturn, while automakers are further shifting production capacity and resources toward NEVs.
For now, China’s auto market remains relatively subdued in August. NEVs are also declining, but their higher market penetration and export support have kept them well ahead of conventional vehicles.
With the Chengdu Auto Show entering a period of concentrated new-model launches in late August, alongside the gradual rollout of local policies to support consumer spending, market activity could pick up, potentially laying the groundwork for the traditional September-October peak sales season.
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