China's NEV penetration at retail is expected to be around 37.8 percent in August, up from 36.1 percent in July.

Retail sales of new energy vehicles (NEVs) in China are expected to rebound in August, reversing the sequential decline in July, according to the China Passenger Car Association (CPCA).

In August, retail sales of NEVs in China are expected to be around 700,000 units, up 31.5 percent year-on-year and up 9.2 percent from July, the CPCA's estimates released today showed.

Car companies, which contribute about 80 percent of passenger car sales, are targeting retail sales growth of about 5 percent in August from July, but a slight decrease from a year earlier, the CPCA said.

According to preliminary projections, China's passenger car sales are expected to stand at about 1.85 million units in August, up 4.7 percent from July but down 1.3 percent from a year earlier, the CPCA said.

This means that the penetration rate of NEVs at retail is expected to be around 37.8 percent in August, up from 36.1 percent in July.

Heavy rains in some parts of China in early August resulted in a relatively small number of damaged vehicles, which had a limited impact on the overall car market, the CPCA said.

Mainstream manufacturers carried out a new round of price cuts and promotions in August, and the support to the vehicle market remained stable, according to the CPCA.

Affected by the extreme rainfall in northern and northeastern China in late July and early August, the average daily retail sales of major manufacturers in the first week of August amounted to 40,100, a year-on-year drop of 0.8 percent.

From the second week onwards, China's auto market gradually recovered, with the release of some pent-up demand due to the extreme weather, allowing average daily retail sales to rebound to 49,100, up 12.6 percent year-on-year, the CPCA said.

In the third week, China's auto market slowed down, with daily retail sales averaging 51,900, up 2.9 percent year-on-year.

In the fourth week, sentiment in the car market is expected to improve slightly, with average daily retail expected to be 60,700, up 4.4 percent year-on-year, according to the CPCA.

In the fifth week, the average daily retail sales in China's car market are expected to be 128,200, down 14.7 percent from a year ago, the CPCA said.

In the NEV market, carmakers launched a higher number of new models in the second half of the year than in the first half, which is expected to support the NEV market in August and even in the second half of the year, the CPCA said.

China EV insurance registrations for week ending Aug 20: Tesla 13,900, Li Auto 8,000, Nio 4,100