(Yicai) June 9 -- Auto sales in China plunged 22 percent last month from a year earlier, dragged down by weakness in the gasoline vehicle market, while new energy vehicle adoption set a new record high.

Some 1.51 million passenger vehicles were sold through retail channels in May, a 9.2 percent increase from the previous month, according to data released by the China Passenger Car Association yesterday. Sales of fuel cars tumbled 39 percent year on year, accounting for 82 percent of the overall decline in retail sales.

High oil prices are suppressing demand for gas cars and accelerating the shift to electric cars, with NEV adoption at 63 percent despite retail sales falling 7.5 percent to 950,000 units last month. Wholesale figures pointed in the same direction, with NEV sales jumping 11 percent to 1.35 million for a 61 percent adoption rate.

Car exports, including complete vehicles and complete knock-down kits, surged 75 percent to 784,000, accounting for 35 percent of automakers' total sales. NEV exports soared 113 percent to 424,000, while domestic brand shipments rose 83 percent to 682,000.

BYD led retail sales, followed by Geely Auto and Changan Automobile, with the three companies seeing sales drop 29 percent, 17 percent, and 32 percent to 207,000, 169,000, and 92,000, respectively. Leapmotor was the sole EV startup to break into the top 10 after sales surged 48 percent to 61,000.

Joint-venture brands showed signs of progress in electrification. Retail sales of NEVs by leading JV brands climbed 51 percent in May, while their wholesale penetration rate rose to 15 percent. By contrast, retail sales of NEVs by Chinese brands fell 10 percent, hurt by subsidy cuts on budget EVs and a weakening micro vehicle market.

The CPCA expects the market to remain in a weak recovery phase in June, with month-on-month improvement but year-on-year pressure. Sales drives at the end of the first half are likely to support month-over-month gains, but weak domestic demand and high fuel prices limit the scope for a substantial year-on-year rebound.

Editor: Martin Kadiev