Domestic vehicle market has remained sluggish this year despite government efforts
Global sales of Chinese made vehicles rose 6% to 2.55m units in June 2024 from 2.51m units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM). Sales last month were driven by a 28% increase in exports to 490,000 units while domestic sales fell 3% to 2.06m.
The domestic vehicle market has remained sluggish this year despite government efforts to stimulate demand, including reducing downpayment requirements on vehicle loans and offering one-off subsidies of CNY10,000 (US$1,380) to buyers trading in their old vehicles for qualifying new models. Competition in the marketplace also remained fierce, with dealers offering heavy discounts. But consumer spending in the country remained weak, particularly regarding large purchases.
Global vehicle sales in the first half of 2024 rose by 6% to 14.05m units from 13.24m in the same period of last year, with domestic sales rising by just 4% to 11.26m while exports surged 30% to 2.79m units.
Global sales of new energy vehicles (NEVs), comprising mainly battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), rose by 30% to 1,049,000 units in June and by 32% to 4,999,000 units year to date (YTD) including a 10% increase in exports to 608,000 units. Global BEV sales rose by 10% to 3,002,000 units in this period while PHEV sales surged by 94% to 1,997,000 units.
Separate registration data showed 4,397,000 new NEVs were registered in the country in the first half of the year while the total number in use rose to 24.72m at the end of June.
Overall vehicle production rose 5% year on year to 13.89m units in the first six months of 2024. The decision by the European Union last month to impose higher import duties on Chinese BEVs inevitably will hold back vehicle output and exports in the second half of the year.
Manufacturer performances
SAIC Motor global sales plunged 26% to 300,525 units in June 2024 with sales sharply lower across the group. Total sales in the first half of the year were down by almost 12% at 1,826,954 units, despite a 24% increase in NEV sales to 461,027 units while overseas sales fell by 8.5% to 487,868 units. SAIC-GM-Wuling deliveries increased 10% to 570,009 YTD and SAIC Volkswagen was up 2% at 512,088 units, while SAIC-GM reported a 50% drop to 225,579 units.
BYD global sales increased 28% to 1,612,983 units YTD with passenger BEV sales rising by 18% to 726,153 units and PHEV volumes surging by 40% at 880,992 units, while commercial vehicle sales dropped by 22% to 5,838 units. Overseas sales jumped by 174% to 203,404 units.
Geely Auto six month global sales increased by 41% to 955,700 units and Great Wall Motor sales were 8% higher at 559,669 units, including a 63% increase in overseas sales to 201,500 units, while GAC Group reported a 26% decline to 863,038 units.
Tesla shipments from its Shanghai plant fell 10% to 426,623 units YTD with the brand’s retail sales in China down 5% at 278,317 units.
Source from Just Auto
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