Shanghai (ZXZC)- China's domestic passenger vehicle ("PV") retail sales are anticipated to reach 1.36 million units in Jan. 2023, which should drop 34.6% from the year-ago period and also shrink 37.3% from the previous month, according to the China Passenger Car Association ("CPCA").

For clarity, the passenger vehicles hereby refer to the cars, SUVs, and MPVs locally produced in the world's largest auto market.

The daily PV retail sales for the first and second weeks of Jan. 2023 reached around 44,600 units and 51,700 units, sliding 24% and 18% from the previous year, respectively, according to the data offered by main automakers in China and compiled by the CPCA.

The third week of Jan. is likely to post a 65% year-on-year plunge with about 26,000 PVs retailed across China per day on average, while the daily PV retail volume in the fourth week may climb 9% from a year earlier to 82,000 units averagely.

The decline in Jan. PV sales would be partly attributed to the Spring Festival holiday and the demands overdrawn by the government's withdrawal of new energy vehicle subsidies, and other factors, said the association.

In addition, the retail sales of new energy passenger vehicles in Jan. are forecasted to reach roughly 360,000 units, edging up 1.8% year on year and representing a penetration rate of 26.5% in the PV market, the CPCA added.