The automotive industry in China has shown positive growth trends since the beginning of 2024. With a slight year-on-year increase in sales in the domestic market and rapid growth in auto exports, the industry is on a steady path towards growth. The production and sales of new energy vehicles (NEVs) continue to rise, with market share steadily increasing. By the end of June, the cumulative production and sales of domestically produced NEVs exceeded 30 million units, marking a significant milestone for the industry.
Looking ahead to the second half of the year, favorable policies such as trade-in incentives and NEV promotions in rural areas will continue to boost the market. The launch of new products by automakers will further stimulate consumer demand, supporting overall industry growth. However, challenges such as insufficient consumer confidence, international trade tensions, and intensifying competition pose operational pressures on enterprises. To ensure stable industry operation, efforts to boost consumer confidence and improve the market environment are essential.
In June 2024, China’s auto production and sales saw month-on-month increases of 5.7% and 5.6%, respectively, despite year-on-year dips. The first half of the year witnessed a 4.9% rise in auto production and a 6.1% increase in sales compared to the previous year.
The NEV market in China continues to show robust growth, with production and sales volumes surging year over year. In June, NEV production jumped 28.1% and sales surged 30.1% from a year ago, accounting for a significant portion of total auto sales. Domestic NEV sales in the first six months of 2024 totaled 4.339 million units, while NEV exports increased by 13.2% to 605,000 units.
Chinese automakers also saw success in overseas markets, with total auto exports rising by 30.5% in the first half of the year. Chery led the way in vehicle exports in June, while BYD experienced significant growth year over year. Overall, Chinese automakers are making strides in international markets, with strong export performances contributing to industry growth.
The automotive industry in China continues to evolve and expand, with a focus on new energy vehicles and international market strategies driving growth. As the industry navigates challenges and opportunities, continued efforts to enhance consumer confidence and market conditions will be crucial for sustained success.
