April Passenger Car Sales Seen at 1.42 Million Units, NEV Penetration to Exceed 60%

Passenger vehicle retail sales in April are expected to reach approximately 1.42 million units, down 13.8% month-over-month, in line with typical seasonal patterns. Of this, new energy vehicle (NEV) retail sales are projected to reach 860,000 units, pushing the market penetration rate to an estimated 60.6%. In Q1, cumulative retail sales of passenger vehicles totaled 4.226 million units, a year-over-year decline of 17.4%. The internal combustion engine (ICE) vehicle market continues to face pressure, with March retail sales totaling 795,000 units—a significant year-over-year drop. In April, high fuel prices and intensified price competition from NEVs further heightened consumer hesitation, lengthening purchase decision cycles. Meanwhile, after a brief adjustment in Q1, the NEV market resumed growth, recording retail sales of 852,000 units in March with a penetration rate of 51.7%. In the lead-up to the Beijing Auto Show in late April, automakers launched a wave of new models. Chinese brands accelerated the rollout of hybrid and battery-electric vehicles, while joint ventures expedited the introduction of products based on dedicated EV platforms—shifting market focus from pricing to product competitiveness. According to data from the China Passenger Car Association (CPCA), leading automakers, which account for over 70% of the market, lowered their April retail targets month-over-month. Daily average retail sales in the first two weeks stood at 25,000 and 38,000 units respectively, below levels seen in the same period last year. However, showroom traffic and orders rebounded in the third and fourth weeks due to pre-launch marketing of new models, although deliveries have yet to fully ramp up. The auto market is currently transitioning from policy-driven to product-driven growth, with consumers placing greater emphasis on intelligent features, real-world driving range, and charging convenience. As new models gradually enter delivery phases and supportive consumption policies continue to take effect, the market is poised for a phased release of pent-up demand in Q2.