(Yicai Global) July 11 -- Passenger vehicle sales increased in China every month between February and June from the month before, something that has not happened since the year 2000.

Retail car sales totaled 1.9 million in June, an 8.7 percent gain from May, according to data released by the China Passenger Car Association yesterday. Sales rose 7.3 percent in May, 2.5 percent in April, 14.3 percent in March, and 7.5 percent in February.

But sales fell 2.6 percent last month from a year earlier because of the high comparative base in June last year, when the government’s policy halving the purchase tax on fuel vehicles was introduced.

In the first half of this year, car sales inched up 2.7 percent to 9.5 million from the same period last year, CPCA data also showed.

The CPCA forecast sales to fall this month on a yearly basis, given the high base last year and the promotions that disrupted normal prices in the first half, and added that time is needed for prices to return to normal.

New energy vehicle sales totaled 665,000 units in June, up 25.2 percent from a year earlier and 14.7 percent from a month earlier. Their market penetration rate rose 7.8 percentage points to 35.1 percent.

In the January to June period, NEV sales rose 37.3 percent to 3.1 million from a year ago, growing at a slower pace than in the same period of last year, but faster than the overall auto market.

The NEV market usually performs better in the second half, CPCA Secretary General Cui Dongshu said, adding that sales will achieve the annual goal of 8.5 million units this year thanks to the market’s sound performance in the first half and favorable policy support.

Passenger vehicle sales will reach 23.5 million this year, 8.5 million of which will be NEVs, the CPCA estimated earlier. The penetration rate of NEVs will reach 36 percent.

Half of the cars sold through retail channels in China in the first half were Chinese brands, up 4.2 points from a year earlier, thanks to rising NEV sales and vehicle exports, the CPCA noted. Traditional Chinese carmakers such as BYD, Geely Automobile Holdings, Changan Automobile, and Chery Automobile, are overshadowing foreign auto giants.

Passenger vehicle exports soared 56 percent to 290,000 in June from a year ago, but fell 4 percent from May, with NEVs accounting for 28 percent of last month’s total, the CPCA said. In the first half, the figure jumped 92 percent to 1.7 million.

The CPCA expects vehicle exports to continue to grow significantly this month because recent changes in the strength of the Chinese yuan in the foreign exchange market favor exports.

Editor: Futura Costaglione