Passenger Car Retail Sales Drop 16% YoY in First Three Weeks of March; NEV Penetration Exceeds 50%

According to data from the China Passenger Car Association (CPCA), from March 1 to 22, nationwide passenger vehicle retail sales reached 920,000 units, down 16% year-over-year but up 19% month-over-month. Wholesale volume totaled 1,084,000 units, a 14% year-over-year decline but a sharp 62% month-over-month increase. New energy vehicles (NEVs) performed notably well, with retail sales of 495,000 units, accounting for a penetration rate of 53.9%; the wholesale penetration rate also reached 50.1%. Looking at weekly figures, average daily retail sales in the first three weeks gradually rebounded to 51,000 units, with the year-over-year decline narrowing to 7%. Conventional fuel-powered vehicles continued to face pressure due to the post-Chinese New Year seasonal lull and rising fuel prices, while the NEV market entered a wait-and-see period ahead of new model launches—transaction prices remained stable but fell short of expectations. The CPCA noted that the overall auto market is in a phase of mild recovery, with intensifying strategic博弈 between automakers and dealers, prompting adjustments in channel strategies aligned with new vehicle launch schedules.