The China Passenger Car Association (CPCA) has stated that passenger vehicle retail sales in China are expected to amount to 1.52 million units in July this year, down 5.1 percent month on month, while down 16.8 percent year on year. In particular, new energy vehicle retail sales in China are expected to total 980,000 units, almost remaining stable month on month, with the market penetration rate of NEVs standing at around 64.5 percent in July, increasing further, signaling that NEVs are still the primary driving force behind vehicle sales.
July is a traditionally slack month for the auto market. The carryover effect of the half-year sales rush in June has emerged, and the market will return to being driven by real demand. High temperatures, heavy rainfall and flooding in many regions have suppressed offline foot traffic and terminal deliveries, resulting in consumers' unwillingness to purchase vehicles. The official trade-in policy and the ramp-up of new vehicle deliveries provide underlying support for the market, allowing it to operate at a moderately low level amid the seasonal downturn.
