China’s locally-made passenger vehicle retail sales likely to rise 9.5% YoY in Oct. 2023: CPCA

Shanghai (Gasgoo)- China's domestic passenger vehicle ("PV") retail sales are anticipated to reach 2.02 million units in October 2023, which should climb 9.5% from the previous year and edge up 0.1% from the previous month, according to the China Passenger Car Association ("CPCA").

Of the PVs retailed in China in October, around 750,000 units were expected to be new energy vehicles (NEVs, referring to battery electric vehicles and plug-in hybrid electric vehicles), representing a 0.9% growth month-on-month growth and a 34.6% year-on-year jump, and also indicating a 37.1% penetration rate.

For clarity, the passenger vehicles mentioned here are all locally produced on the Chinese mainland.

During the first week of October, main car manufacturers in China saw a daily average of 52,200 PVs sold, representing a 67.7% year-on-year surge and an 18.9% growth compared to the month-ago period, according to data from the CPCA. After the National Day and Mid-autumn Festival holidays, manufacturers resumed their regular sales pace, with the average daily retail sales volume reaching roughly 53,600 units in the second week, showing a 5.0% year-on-year increase and a 10.5% month-on-month increase. In the third week, the daily average retail sales in the PV market came in at 59,600 units, marking an 11.4% year-on-year growth but a 2.3% month-on-month decline.

Given the month-end sprint efforts, China’s daily average PV retail volume is likely to be 89,700 units on average in the fourth week of October, which should dip 1.7% over the year-ago period.

In October, the traditional peak season for car shopping in China, the momentum of terminal discounts and promotional policies continued, said the CPCA. With the overlap of the National Day and the Mid-Autumn holidays, various regions hosted numerous car exhibitions and promotional activities, stimulating consumption demands during the period. After the holiday, consumers’ demand returned to its regular sales pace, and market enthusiasm noticeably declined. Overall, it is expected that the automotive market in October will maintain a level similar to that of September.