China’s New-Energy Vehicle Sales Fall 13.7% to 1.11 Million Units in October
Key Facts
Retail sales of new-energy vehicles in China fell 13.7% year over year to 1.11 million units in October, according to China Passenger Car Association data cited by Dow Jones. The drop coincided with a decline in overall passenger-car sales, reflecting broad weakness in the domestic market during the month. Even so, new-energy vehicles’ share of total passenger-car sales rose to 67.5%. That was an increase of 10.5 percentage points from the same period a year earlier. The result combined a contraction in sales with a growing share for new-energy vehicles in the market.
Total retail sales of passenger cars reached 1.64 million units in October, down 27.1% from a year earlier, according to the China Passenger Car Association. The decline was steeper than the 13.7% drop in new-energy vehicle sales, while their share rose to 67.5% of the market. The figures show that new-energy vehicles held up relatively well amid the overall sales weakness, without avoiding an annual contraction. The reported figures do not provide a month-on-month comparison for October retail sales. Nor do the data offer a documented breakdown of battery-electric and plug-in hybrid vehicle performance.
Weak domestic demand extended to China’s car sales overall, which fell 27.3% year over year to 1.65 million vehicles in October, according to a Reuters report based on industry data. That moderated the pace of decline from a 28.1% drop in September but extended the losing streak to 12 consecutive months. This figure differs from the China Passenger Car Association’s retail sales reading of 1.64 million units, down 27.1%, as each figure belongs to the statistical series cited by its source. Exports, by contrast, remained more resilient than domestic sales. Passenger-car shipments abroad rose 68.2% to 932,000 vehicles in October, after growing 73.2% in September, according to association data.
Separate data cited by Dow Jones showed that Chinese exports of new-energy vehicles more than doubled year over year in October. Total passenger-car exports also rose 68.5% to 928,000 units, according to China Passenger Car Association data. These figures concern exports across the broader market and do not mean domestic sales performed similarly. The total export reading here also differs from the 932,000 vehicle shipments reported by Reuters based on association data. Strong exports point to some of the sector’s activity outside the domestic market, while domestic passenger-car retail sales remained sharply lower.
Against the backdrop of demand, China’s consumer-price inflation slowed to 0.7% year over year in October, from 0.9% in September, and came in below economists’ forecast of 0.8%, according to National Bureau of Statistics data cited by Reuters. In the opposite direction, the producer-price index accelerated to 5.7% annually in October, compared with a 5.0% rise in September, exceeding the Reuters poll forecast of 5.3%. The National Bureau of Statistics released both figures on November 9. The data present a mixed picture of price movements: slower consumer-price inflation and faster producer-price inflation. The figures provided do not specify the extent to which these indicators affected car-buying decisions in October.
Nomura said China’s car market had entered an "elimination phase" and that further consolidation and cooperation in the industry had become necessary to restore confidence. The firm’s comment comes as the market combines declining domestic sales with rising exports, while new-energy vehicles continue to expand their share despite lower annual sales. The China Passenger Car Association typically describes November as a quiet month for China’s car market. It linked any potential recovery in sales to an improvement in consumer confidence. The available information does not include a numerical estimate for November sales or a specific date for the next reading.