China NEV retail sales fall 10% in early September as penetration hits 70.3%

• China's passenger NEV retail sales totaled 362,000 in September 1-13, up 16% from the same period last month but down 10% from a year earlier.
• The continued slump in gasoline vehicle sales pushed NEV retail penetration to 70.3%.

China's new energy vehicle (NEV) retail sales continued to recover from the previous month in the first half of September, but remained below year-earlier levels.

Retail sales of passenger NEVs totaled 362,000 in September 1-13, down 10% year-on-year but up 16% from the same period last month, according to data released Wednesday by the China Passenger Car Association (CPCA).

Year-to-date NEV retail sales totaled 7.036 million, down 12% year-on-year.

NEVs accounted for 70.3% of passenger vehicle retail sales in September 1-13, slightly below the first week's 71.5% but still near historical highs.

NEV wholesale sales performed better, totaling 411,000 in September 1-13, up 1% year-on-year and 26% from the same period last month.

Year-to-date NEV wholesale sales reached 10.19 million, up 9% year-on-year. NEV wholesale penetration stood at 74.7% during September 1-13, reflecting continued strength in exports.

Total passenger vehicle retail sales in China were 515,000 in September 1-13, down 23% year-on-year but up 4% from the same period last month.

Year-to-date passenger vehicle retail sales totaled 12.23 million, down 21% year-on-year.

Average daily retail sales were 35,050 in the first week of September, September 1-6, down 19% year-on-year and 1% from the same period in August.

In the second week, September 7-13, average daily retail sales were 43,515, down 26% year-on-year but up 8% from the same period in August.

China's passenger vehicle wholesale sales totaled 550,000 in September 1-13, down 22% year-on-year but up 22% from the same period last month.

Year-to-date wholesale sales totaled 17.73 million, down 6% year-on-year.

Average daily wholesale sales were 34,532 in September 1-6, down 21% year-on-year but up 13% from the same period last month.

In September 7-13, average daily wholesale sales were 49,025, down 23% year-on-year but up 28% from the same period last month.

Most NEV brands currently lack strong-selling models, but manufacturers still need to maintain steady production, the CPCA said.

Sales efforts have become target-driven, with automakers pushing for volume even without order backlogs. This has slightly improved manufacturers' direct retail sales and left NEV penetration "unusually high," the CPCA said.

High fuel prices remain the main factor weighing on gasoline vehicle sales. Since late July, China's cumulative gasoline price increases for the year have exceeded 830 yuan ($122) per metric ton.