(Yicai) Sept. 7 -- China’s passenger car sales picked up last month thanks to a surge in purchases of new energy vehicles, according to data from the China Passenger Car Association.

Retail sales of passenger vehicles rose 2 percent to 1.9 million units in August from a year ago after a cut in the vehicle purchase tax boosted the year-earlier comparable figure, CPCA’s data showed yesterday. Sales fell this June and July.

NEV retail sales surged 32 percent to 698,000 units last month, while at wholesale 805,000 NEVs were sold, a 28 percent gain.

The complex and changeable external environment has greatly impacted consumer confidence, the CPCA said, adding that demand for first-time vehicles is far less than that for replacements.

China’s property market boom has also saddled homebuyers with huge debts, the association said, while its recent cooling off has promoted a recovery in auto purchasing power.

In the eight months ended Aug. 31, retail passenger car sales rose 2 percent to 13.2 million, while wholesale sales jumped 6 percent to 15.4 million, the data showed. Retail NEV sales jumped 36 percent to 4.4 million, and wholesale sales surged 39 percent to 5.1 million.

Editor: Martin Kadiev