(Yicai Global) Feb. 8 -- China’s auto sales plunged more than 30 percent last month, marking the lowest growth rate in the same period this century, because of the impact of Covid-19 and the early Lunar New Year holiday, according to the China Passenger Car Association.

Nearly 1.3 million passenger cars were sold in January, a 38 percent slump from a year earlier and down 40 percent from a month earlier, CPCA data showed today. New energy vehicle sales tallied 332,000, a drop of 6.3 percent and 48 percent on a yearly and monthly basis, respectively.

The Lunar New Year holiday began on Jan. 22, the earliest this century, resulting in fewer working days, so the sales drop is reasonable and in line with expectations, according to the CPCA.

Market trading after the holiday and after three years of Covid-19, will really get underway this month, when the consumer market may present significant opportunity, the industry group added. 

Demand for combustion-engine vehicles will gradually recover, and the growth of retail car sales this month is worth looking forward to. But the NEV market is changing as consumers are taking a wait-and-see attitude before new subsidies are confirmed, while electric car charging issues have emerged, especially over the holiday period, and NEV prices have changed after subsidies ended, the CPCA pointed out.

Automaker BYD sold about 150,000 vehicles in January, ranking first, followed by Changan Automobile and FAW-Volkswagen Automotive with sales of about 140,000 and 117,000 vehicles, respectively. Only seven producers wholesaled more than 10,000 NEVs last month, with BYD selling 150,164 and Tesla China 66,051.

China exported about 230,000 passenger vehicles last month, up 34 percent from a year earlier and down 13 percent on the previous month. NEVs accounted for 33 percent of vehicle exports last month.

Editor: Peter Thomas