The China Passenger Car Association (CPCA) has announced that the wholesale sales of new energy vehicles (NEVs) in China are estimated at 1.36 million units in May this year, with both the year-on-year and month-on-month increases exceeding 11.0 percent, indicating that the new energy sector is showing early signs of recovery.
Due to the disruption of navigation through the Strait of Hormuz, domestic retail prices of refined oil products have indicated two separate rises, with the aggregate increase amounting to RMB 400/mt ($59/mt), which has significantly raised the cost of fuel-powered vehicle usage. The overall auto market has been under downward pressure and performing weakly, while new energy vehicles have emerged as the core growth highlight of the market.
