This means that the penetration of NEVs at retail is expected to be 36.6 percent in June, up from 33.3 percent in May.

Auto market demand dropped slightly in early June, but the market warmed up with the start of the June 18 shopping spree, the release of local government subsidies and the Dragon Boat Festival, the CPCA said.

The overall discount rate in China's passenger car market was about 17.8 percent in mid-June, expanding 0.6 percent from the end of May, according to the CPCA.

Major carmakers averaged 31,100 daily retail sales in the first week of June, down 42 percent from the same period in May, mainly due to a high base of vehicle sales during last month's Labor Day holiday, the CPCA said.

Their average daily retail sales in the second week of June were 42,900 units, down 14 percent from the second week of May.

As promotions kicked off in mid-June, the car market picked up in the third week, with average daily retail sales of 57,500 units, up 21 percent from the same week in May.

In the fourth week, with the arrival of the Dragon Boat Festival holiday, average daily retail sales are expected to be 62,000 units, an increase of 26 percent over the same period in May.

In week five, average daily retail is expected to be 113,700 units, up 32 percent from the same period in May, due to the pulse of the quarter-end sales, according to the CPCA.

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