China's Automobile Production and Sales in the First Half of the Year

On July 10, the China Association of Automobile Manufacturers (hereinafter referred to as the "China Automobile Association") released data showing that in the first half of the year, my country's automobile industry continued to perform well, and the main economic indicators showed a growth trend. Among them, China's automobile production and sales reached 13.891 million and 14.047 million respectively, up 4.9 per cent and 6.1 per cent respectively over the same period last year, while China exported 2.793 million cars, up 30.5 per cent over the same period last year.

Chen Shihua, deputy secretary-general of the China Automobile Association, said that in the first half of the year, domestic sales increased slightly year-on-year, and terminal inventory was higher than normal; automobile exports maintained rapid growth, which contributed significantly to the overall growth of the market, and the growth rate of new energy vehicle exports slowed down significantly; new energy Vehicle production and sales continued to maintain rapid growth, and market share steadily increased. According to the association's statistics, as of the end of June this year, the cumulative production and sales of domestic new energy vehicles exceeded 30 million; the market share of Chinese brand passenger cars exceeds 60%, achieving an upward breakthrough.

Specifically, at the passenger car market level, in June, passenger car production and sales completed 2.177 million and 2.215 million vehicles, respectively, up 6.2 percent and 6.7 percent month-on-month, down 1.9 percent and 2.3 percent year-on-year, respectively. Among the main varieties of passenger cars, the production and sales of cross-type passenger cars decreased month-on-month, while the production and sales of the other three categories of passenger cars showed a trend of growth. However, compared with the same period last year, the production and sales of cross-type passenger vehicles showed double-digit growth. The production of multi-function passenger vehicles (MPV) decreased significantly but the sales increased slightly. The production and sales of basic passenger vehicles (cars) and sports multi-purpose passenger vehicles (SUV) have declined.
From January to June, passenger car production and sales totaled 11.886 million and 11.979 million, with year-on-year growth rates of 5.4 and 6.3 percent, respectively. Among them, SUV production and sales showed double-digit growth, car production and sales increased slightly, MPV and cross-type passenger car production and sales showed a slight decline.

At the level of the commercial vehicle market, in June, the production and sales of commercial vehicles were completed 330000 and 337000, respectively, with production up 2.8 percent month-on-month and sales down 1.2 percent month-on-month, down 3.5 percent and 4.9 percent year-on-year, respectively. Among the main varieties of commercial vehicles, the output of passenger cars decreased but the sales volume increased, and the output of trucks increased but the sales volume decreased; compared with the same period last year, the production and sales of passenger cars and trucks decreased slightly.

In terms of breakdown, medium-sized trucks and light trucks increased month-on-month, heavy truck production increased but sales decreased, and mini-truck production and sales decreased. Among buses, light buses decreased slightly month-on-month, while production and sales of large buses and medium buses increased significantly month-on-month. From January to June, the production and sales of commercial vehicles totaled 2.005 million and 2.068 million, with year-on-year growth rates of 2% and 4.9, respectively.

At the level of the new energy vehicle market, in June, the production and sales of new energy vehicles completed 1.003 million and 1.049 million vehicles respectively, up 6.7 per cent and 9.8 per cent respectively from the previous month, up 28.1 per cent and 30.1 per cent respectively from the same period last year, and the market share reached 41.1 per cent. The production and sales of the three major types of new energy vehicles are on the rise, both month-on-month and year-on-year.

From January to June, the production and sales of new energy vehicles totaled 4.929 million and 4.944 million, up 30.1 per cent and 32 per cent respectively over the same period last year, with a market share of 35.2 per cent. As of the end of June, the cumulative production and sales of domestic new energy vehicles exceeded 30 million.
At the enterprise market level, data show that from January to June, the top 10 enterprises in car sales sold a total of 11.917 million vehicles, accounting for 84.8 per cent of total car sales. Among them, the sales of SAIC Group, China FAW, GAC Group and BAIC Group declined to varying degrees, while the sales of other enterprises showed a growth trend, among which Chery Holdings grew significantly.

At the export level, from January to June 2024, car exports reached 2.793 million, up 30.5 percent year-on-year. This data highlights the increasing competitiveness and market share of Chinese cars in the international market. Among the top ten enterprises in vehicle export, BYD, Great Wall and Changan performed particularly well, achieving significant growth respectively.

According to industry analysts, overall, the significant growth of China's auto exports in the first half of 2024 is not only a manifestation of the success of corporate technology and market strategies, but also a concrete manifestation of the increasing influence of Chinese manufacturing on a global scale. In the future, with the further development of the global market and the continuous advancement of technological innovation, China's auto exports are expected to achieve higher quality development.

Although the overall performance of the automotive industry in the first half of the year was better, it still faces multiple challenges. Looking forward to the second half of the year, Chen Shihua believes that the continuous implementation of favorable policies such as trade-in and new energy vehicles to the countryside, and the intensive listing of new products by enterprises will help further release the consumption potential of the automobile market and provide assistance for the industry to achieve steady growth throughout the year.