China’s Auto Market Sees Mixed Performance in July 2024
Beijing (Gasgoo)- In July, China’s auto market experienced a traditional off-season, with some car manufacturers taking high-temperature breaks, leading to a slowdown in production and sales. The overall market performance was relatively subdued, with both month-on-month and year-on-year declines. However, there were some bright spots in the industry, with new energy vehicles (NEVs) and auto exports continuing to show strong growth.
Recently, China’s National Development and Reform Commission and the Ministry of Finance issued new measures to support large-scale equipment renewal and old-for-new replacement of consumer goods. This policy aims to boost the scrapping and renewal of old operational trucks, increase subsidies for new energy buses and power batteries, and raise subsidies for vehicle scrapping and replacement.
In July 2024, China’s auto production and sales both experienced a downturn compared to the previous month and the same period last year. According to data from the China Association of Automobile Manufacturers (CAAM), the country produced 2.286 million vehicles and sold 2.262 million vehicles.
Despite the monthly decline, China’s auto output for the first seven months of the year was still 3.4% higher than the previous year, with auto sales rising by 4.4% year over year.
Despite the overall market slowdown, China’s NEV market remained strong in July. The country produced 984,000 NEVs and sold 991,000 units, representing significant year-on-year growth. NEVs accounted for 43.8% of China’s total new vehicle sales in July.
In the first seven months of 2024, China’s NEV production and sales volumes saw significant growth compared to the previous year, with NEVs constituting 36.4% of total auto sales. Domestic NEV sales surged by 34.3% year-on-year, while exports increased by 11.4%.
Overall, China’s auto exports in July reached 469,000 units, with passenger cars accounting for the majority of the volume. The top exporters included BYD, Great Wall Motor, and Changan Auto, who saw substantial year-on-year growth in their export volumes.
Overall, China’s auto market in July 2024 showed mixed performance, with some sectors experiencing growth while others faced challenges. The government’s new policies to support vehicle renewal and NEV production are expected to drive further growth in the industry in the coming months.
