China PV Monthly sales volume
Sales slightly decline MoM but still grow
According to the China Passenger Car Association (CPCA), the China passenger vehicle (PV) market was turning down slightly in July, with wholesale and retail MoM decreases at -4%, mostly due to summer seasonality. However, wholesale and retail YoY growth both widened further to 7%/8%, mainly due to a low base in July 2019. The China Auto Dealer Association (CADA) suggests a higher month deal inventory in July at 1.91, vs. 1.74 in June. Pricing discounts across the market widened slightly sequentially.
Neighbourhood Electric Vehicle (NEV) sales: returned to growth after a 12-month decline
July has witnessed the first positive YoY growth in 12 months for NEV, mainly because of the easier-comparable base in July 2019. YoY growth is 28%, while the MoM decline was 4%. Several new products launched have outperformed the market to a large extent. We still expect positive YoY growth for August, driven by new products ramp-up.
Different performance across segments
Across the market, we see obvious differences in performance among different car segments. Generally speaking, larger cars are performing better in each type and SUVs are performing better than Sedans. C-segment cars have already recorded positive YoY YTD sales growth at 4% for sedans and 21% for SUVs. B-segment cars have reached positive YoY monthly growth at 39% for Sedans and 13% for SUVs.