China’s locally-made passenger vehicle retail sales likely to jump 26% YoY in Nov. 2023: CPCA

Shanghai (Gasgoo)- China's domestic passenger vehicle ("PV") retail sales are anticipated to reach 2.08 million units in November 2023, which should climb 2.3% from the previous month and jump 26% from the previous year, according to the China Passenger Car Association ("CPCA").

The anticipated year-on-year leap in November PV retail sales was mainly due to the low base for the year-ago period.

Of the PVs retailed in China in November, around 820,000 units were expected to be new energy vehicles (NEVs, referring to battery electric vehicles and plug-in hybrid electric vehicles), representing a 6.2% month-on-month (MoM) growth and a 36.4% year-on-year (YoY) jump, and also indicating a 39.4% penetration rate.

Entering the final sprint towards the year-end, the conventional oil-fueled vehicle market maintains a moderate level of enthusiasm. The new energy vehicle (NEV) market, driven by both the introduction of new products and competitive pricing, is poised to reach its historic high in sales, providing substantial support to the overall automotive market in November, said the CPCA. Many automotive manufacturers leverage promotional activities during "11.11" shopping festival and expect to enhance attraction during the mid-month Auto Guangzhou 2023, anticipating that the automotive market in November will maintain a relatively high level of vitality.

However, as the market response during "11.11" period was somewhat subdued, with demand showing a relatively cool trend, the full potential for a surge in sales is yet to be demonstrated at the consumer end.

In the early stages of November, the market demonstrated steady performance, with major auto manufacturers averaging 37,900 units in retail sales per day during the first week—an MoM decline of 27.4% but a YoY growth of 5.5%. The second week, ignited by the "11.11" event, saw daily retail sales rise to 49,800 units, presenting a YoY growth of 26.1%, though a MoM decrease of 6.7%. With the commencement of order deliveries during the "11.11" period, the market rebounded in the third week, achieving an average daily retail figure of 62,200 units—an MoM increase of 9.0% and a substantial YoY growth of 21.0%. As the fourth week unfolded, average daily retail sales reached 67,100 units, representing a YoY surge of 26.3%.

Entering the final push towards month-end (the fifth week), daily PV sales are anticipated to witness a YoY growth of 37.3%, with an estimated daily retail volume of 151,400 units.