Car Retail Forecasts for June: Market Sizes and Trends Expected to Maintain Growth Momentum

The Chinese Automobile Association (CAA) has announced its latest forecasts for the retail market of small cars in China. According to the association, the total sales of passenger vehicles is expected to reach approximately 20 million units by mid-summer, representing a year-on-year increase of 13.4% and a month-over-month growth rate of 3.2%.

New energy vehicle sales are also anticipated to exceed 1.1 million units, with market shares exceeding 55%, up from the previous month.

May Sales Figures

Data released by the CAA in May shows that small car retail sales reached 193.8 million units, representing a year-on-year increase of 13.7% and a month-over-month growth rate of 10%.

New energy vehicle sales in May stood at 102.7 million units, accounting for 53.0% of total car sales, up from the previous month.

In a market influenced by the "Double New Policy", which incentivizes the scrapping and recycling of old cars to promote sustainability and reduce emissions, June's car market is expected to maintain an upward trajectory in consumer enthusiasm.

Impact of "618" Sales Season

As the "618" sales season approaches, automotive manufacturers are launching new rounds of promotions with discounts ranging from a single price point to cash incentives. A recent survey conducted by automotive terminals found that as of mid-June, the average discount rate for new cars was around 25.2%, up from previous months.

However, while these short-term marketing efforts led to an initial surge in sales momentum, the association warns that consumers' expectations for prices are rising, potentially leading to decreased purchases before the end of Q3.