CPCA data: May retail sales of passenger vehicles 1.510 mln units (May 1-31),
down 22.1% YoY and up 9.2% MoM; YTD retail 7.099 mln, down 19.5% YoY.
Market-characteristics: inventory-led competition intensifying and industry
divergence widening. NEV growth is no longer broad-based—high-end electric
models are surging while low-end, budget models and county/township and
entry-level segments are contracting sharply. The short-lived new-car stimulus
is weakening market pull. Channel stress is rising: accelerated, often forced,
destocking; dealers generally loss-making and operational risks increasing.
Conclusion: May improvement reflects only a structural repair; product-level
electrification upgrades and overseas exports have become the primary long-term
growth supports for the sector.
