(Yicai Global) Feb. 14 -- Retail sales of China's passenger cars were around 1.7 million units last month in a 21.5 percent annual and a nearly 21 percent monthly decline, with both growth-rate yardsticks at their lowest point among the readings of the China Passenger Car Association in 15 years, the group announced yesterday.

China's just-ended extended Lunar New Year holiday slammed the brakes on sales by slashing the number of effectives days for deals to 20 for the month, which in theory inflicted losses of about 30 percent on the year, but dealers can carry over some orders booked earlier but unrecorded in the figures to ease this start-of-the-year pressure. 

The outbreak of the Covid-19 virus also brought transactions to a standstill, causing the tempo of these to come in at under expectation, the CPCA noted. 

The nation turned out about 1.4 million vehicles last month, 29 percent fewer than last year in an almost one-third monthly decrease. New energy vehicle wholesale transactions were 45,000 in an annual contraction of more than half and a monthly shrinkage of over two-thirds, according to the trade body.

The growth outlook for the car market will be even cloudier next month, the CPCA forecasts, as the impact of the epidemic becomes ever more acute and it snarls industrial supply chains. 

The virus situation is projected to steady in the middle of next month in areas outside of its Hubei province hotbed, but residents will still only be venturing outside with great wariness and this may prompt a further reining in of expectations. 

Retail sales anticipated to grow this month are now expected to decline by about one-third. The association is now charting the overall decline in the first two months at over 25 percent, it noted.

Editor: Ben Armour