Passenger Car Market - Double-Digit Decline, Yet NEV Penetration Tops 60%

According to data from the China Passenger Car Association (CPCA) on April 29, the total passenger car retail sales reached 1.004 million units from April 1 to 26, marking a 24% drop year-on-year. It is a fresh signal of an ongoing downturn.

However, among the gloom, New Energy Vehicles (NEVs) continue to stand out. NEV retail sales for the same period reached 614,000 units, a decline of 11% year-on-year, still much better than the industry average, with penetration reaching a record 61.2%. For every ten cars sold, more than six have a plug.

Traditional internal combustion engine vehicles remain the primary "losers". With the "price war" failing to ignite sales, the upcoming May Day holiday may offer a short-term opportunity for dealers to clear inventory. Yet, with the reduction in purchase subsidies, the overall market is likely to continue its “W-shaped” fluctuation until the economy fully rebounds.