According to reports, on February 21st, 2023, the China Association of Automobile Manufacturers (CAAM) made a preliminary estimate of the narrow passenger car market data for this month.
In early 2023, due to the early timing of the Spring Festival, the overall sales pace of the car market was significantly accelerated. In the first half of February, the car market was in a mild recovery phase after the holiday, and in the second half of the month, the car market gradually returned to normal. The gradual distribution of local subsidies and the adjustment of new energy prices also helped the market return to normal levels after the holiday.
Sales Trends of Manufacturers
In mid-February, the overall discount rate of the passenger car market was about 13.8%, and the overall level of concessions was basically the same as last month, and the terminal price was relatively stable. Due to the early timing of the Spring Festival and changes in the sales pace, the February car market showed a different seasonal performance compared to normal.
According to the research in February, it is known that the retail target of manufacturers, which accounts for about 80% of the overall market, has a small increase compared to the previous month. CAAM estimated that the narrow passenger car retail market in this month was about 1.35 million units, up 4.3% month-on-month and 7.2% year-on-year. Among them, the new energy market gradually recovered, with around 400,000 units sold, up 20.3% month-on-month and 46.6% year-on-year, with a penetration rate of about 29.6%.
Weekly Trend Estimation
Because the base number of last year’s Spring Festival was relatively low, under the influence of the early timing of this year’s Spring Festival, the daily year-on-year growth rate of the main manufacturer’s retail in the first and second weeks was 39% and 52%, respectively. By the third week, the car market is expected to stabilize and recover, with daily retail sales down 14% year-on-year compared to the same period last year. In addition, considering the post-holiday recovery effect and the end-of-month push by manufacturers, it is expected that the market will rebound slightly in the fourth week and remain stable compared to the same period last year.
March Car Market Back on Track
The latest value-added tax invoice data released by the State Administration of Taxation shows that during the Spring Festival period, the sales revenue of the national consumer-related industries increased significantly compared to the same period last year, with the offline service consumption increasing by 13.5% year-on-year, indicating that consumer willingness is gradually increasing.
Currently, the post-epidemic car market is in a stable transition period. With the gradual reduction of the impact of the epidemic, consumer confidence continues to steadily recover, and the traffic flow of terminal showrooms continues to rise after the holiday. It is expected that the car market will gradually return to normal in March.
To encourage consumption, local governments are continuing their promotional policies, while also actively introducing subsidies for automotive consumption. Some cities with car purchase restrictions have relaxed their quotas, and many provinces have successively introduced subsidies for car purchases throughout the province.
After implementing the price adjustment policy for new energy vehicle companies, the new energy vehicle market will gradually pick up, while also returning to its normal pace.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email email@example.com.