While passenger vehicle sales in March fell significantly by 11.7% compared with the data of the previous year, suppliers of vehicles equipped with alternative drive systems, i.e. New Energy Vehicles (NEVs), reported a significant increase in sales. According to data from the China Passenger Car Association (CPCA), sales of new energy vehicles in March were 445,000 with a year-on-year increase of 137.6%. BYD, China's largest new energy vehicle maker, delivered more than 104,000 vehicles to dealers in March, while Tesla delivered 65,800. New energy vehicles accounted for about 30% of all passenger vehicle sales in March.

The China Association of Automobile Manufacturers (CAAM) said vehicle sales in the first quarter with 6.51 million cars sold rose by just 0.2% compared with that of a year earlier. In addition to supply chain disruptions and rising material costs in the chip industry, there is now the current outbreak of Covid 19 locally, which has caused headaches for the industry. According to Xinhua News Agency, the association expects the government to use taxes and other measures to support the auto industry.