Data from the China Passenger Car Association (CPCA) shows that the estimated total retail volume of narrow passenger cars this month is around 1.8 million units, a month-on-month decrease of 20.4% and a slight year-on-year increase. Among them, new energy vehicle (NEV) retail is expected to reach about 800,000 units, with a penetration rate of 44.4%.

Affected by the halving of purchase tax subsidies, the auto market had a weak start in early January. The average daily retail volume in the first week was 30,000 units, down both year-on-year and month-on-month. In the second week, terminal momentum recovered slightly, with an average daily retail volume of 50,000 units and narrowed year-on-year and month-on-month declines. In the third week, as trade-in subsidies were gradually implemented across regions, market sentiment picked up slowly, with the average daily retail volume expected to reach 57,000 units. Entering the fourth week, driven by the full implementation of subsidy policies and strong pre-holiday first-purchase demand, the market will regain growth momentum, and the average daily retail volume is expected to surge to 120,000 units. For the whole month, the retail market is projected to hit 1.8 million units, a 20.4% month-on-month drop and a 0.3% slight year-on-year increase.