Passenger vehicle sales in China are expected to be around 1.73 million units in May, up 27.7 percent year-on-year and up 6.6 percent from April, the CPCA said.

In May, retail sales of new energy vehicles (NEVs) in China are expected to be around 580,000 units, up 60.9 percent year-on-year and up 10.5 percent from April, according to estimates released today by the China Passenger Car Association (CPCA).

Survey shows that major automakers, which contribute about 80 percent of passenger car sales, are targeting retail sales growth of more than 5 percent in May compared to April and an improvement of more than 20 percent year-on-year, the CPCA said.

According to preliminary projections, Chinese passenger car sales in May were around 1.73 million units, up 27.7 percent year-on-year and up 6.6 percent from April, the CPCA said.

That means the penetration rate of NEVs at retail in May was about 33.5 percent.

During the Labor Day holiday, many cities held auto shows, giving the auto market a high level of attention, the CPCA said. This year, China's Labor Day holiday ran from April 29 to May 3.

The incentives offered by car companies, coupled with local government policies to promote consumption, allowed the Chinese auto market to see a good start in May, with market sentiment and transactions significantly better than the same period in previous years, the CPCA said.

However, as some consumer demand was released at the beginning of the month, the market enthusiasm dropped back significantly as traffic and orders at sales stores turned light after the holidays, the CPCA noted.

Average daily retail sales for major vehicle companies in the first week of May were 53,600, up 46 percent from the previous week and up 67 percent year-on-year.

Average daily retail sales for the second week were 47,300, up 5 percent from the previous week and up 44 percent year-on-year.

Average daily retail sales in the third week are expected to be 53,000, and in weeks four and five the figure is expected to be 72,500, the CPCA said.

In mid-May, the overall discount rate in China's passenger car market was about 16.9 percent, largely unchanged from the previous month, with prices at sales outlets stabilizing, according to the CPCA.

CPCA weekly data: NEV retail sales for 1st 2 weeks of May at 217,000