China’s new-energy vehicle sales drop in February for second month in a row, but outlook remains upbeat
- NEV sales reached 334,000 last month, down 22.6 per cent from January, according to the China Association of Automobile Manufacturers
- NEV sales were affected after subsidies were slashed by 30 per cent in January
China’s booming new-energy vehicle (NEV) segment hit a blip for a second consecutive month in February, as sales were affected by the Lunar New Year holiday and a cut in subsidies.
Sales of NEVs – pure electric, plug-in hybrids and fuel-cell vehicles – reached 334,000 last month, down 22.6 per cent from January, according to the China Association of Automobile Manufacturers (CAAM).
In January, sales fell 18.6 per cent from December, when it surged ahead of the 30 per cent subsidy cuts on NEV purchases that came into effect in the new year. However, sales jumped 184.3 per cent year on year.
“The weak February data does not truly reflect the market situation,” said Tian Maowei, a manager with Yiyou Auto Service in Shanghai. “Sales will rebound in March and the months to come because electric cars are increasingly well received by Chinese drivers.”
The Lunar New Year holiday, which fell between January 31 and February 6 this year, is normally a lean period for car sales, as people meet for family gatherings instead of making big-ticket purchases. Car showrooms are also closed during the holiday.
