Shanghai (ZXZC)- China's domestic passenger vehicle ("PV") retail sales are anticipated to reach 1.98 million units in September 2023, which should climb 3% from the previous year and climbed 3.1% from the previous month, according to the China Passenger Car Association ("CPCA").

Of the PVs retailed in China in September, around 750,000 units were expected to be new energy vehicles (NEVs, referring to battery electric vehicles and plug-in hybrid electric vehicles), representing a 4.7% growth month-on-month and a 22.3% jump year-on-year, and also indicating a 37.9% penetration rate.

For clarity, the passenger vehicles mentioned here are all locally produced on the Chinese mainland.

During the first week of September, major manufacturers in China saw a daily average of 43,900 PVs sold, representing a 14.2% year-on-year increase, according to data from the CPCA. Moving into the second week, daily average sales reached 52,200 units, reflecting a 6.3% year-on-year growth.

As we approach the end of the quarter, coupled with the anticipation of increased sales before the Mid-Autumn and National Day holidays, it is projected that daily average PV retail sales in the third week of September will reach approximately 58,600 units, showing a 7.0% year-on-year increase. However, the fourth week, coinciding with the Mid-Autumn and National Day holidays, will see fewer working days compared to the same period in previous years, thus its daily average retail volume are expected to be around 127,600 units, showing a year-on-year decrease of 5.5%.

Traditionally, September and October are peak seasons for car sales in China. The subsidies by local governments and manufacturers' efforts to boost sales at the end of the third quarter, combined with the Mid-Autumn and National Day holidays, have kept the automotive market's momentum strong in September, said the CPCA. Nevertheless, it's worth noting that as terminal discounts continue to intensify, consumers with a high sensitivity to prices are showing a tendency to delay their vehicle purchases, creating a wait-and-see sentiment in the market.