By Greg Gao

(JW Insights)Apr 28 -- The China Passenger Car Association (CPCA) announced on April 26 its predictions of a substantial growth in China’s passenger car retail sales in April over the same period last year.

The retail sales of passenger cars are expected to reach 1.57 million units in April, a 1.3% month on month decrease, based on daily retail sales data from major automakers in April. However, the year on year increase rate is a staggering 49.8%, owing to the lower base in the same period last year.

Meanwhile, retail sales of new energy vehicles (NEVs), which include pure battery electric cars and plug-in hybrids, are expected to hit 500,000 units, representing a moderate drop of 8.4% month on month, and a penetration rate of 31.8%, CPCA added.

China’s passenger car sales in March were 1.59 million units, a 0.5% year on year increase and a 14.8% month on month rise. During the same period, NEV retail sales registered an impressive 22.6% year on year increase and 24.3% month on month growth, with penetration rates reaching 34.3%. The total passenger car sales for the first quarter of 2023 was 4.265 million, maintaining a year on year decrease of 13.4%.

The 2023 Shanghai Auto Show from April 18 ~ 27 attracted the industry’s attention and provided a boost to the auto market and helping the overall market recover moderately.

However, the China Automobile Dealers Association report from March survey data shows that the comprehensive inventory coefficient of automobile dealers closed at 1.78 at the end of the month, indicating a 7.8% month on month decrease, but it still remains a high level.