China’s Passenger Vehicle Registrations Surge in September 2024
In September 2024, the Chinese Mainland saw a significant increase in locally manufactured passenger vehicle registrations, reaching a total of 2,129,191 units. This marked a year-over-year increase of 11.55% and a month-over-month increase of 10%, making it the second time this year that monthly registrations surpassed two million units.
The surge in passenger vehicle sales in September was driven by a combination of national and local government incentives. The central government allocated 150 billion yuan in special ultra-long-term bonds to stimulate consumption upgrades, particularly in auto trade-ins, which led to an increase in subsidy standards for vehicle replacement. Local governments across the country also launched various trade-in subsidy programs backed by government funding and consumer incentives. This, combined with holiday promotions and a rise in the stock market, contributed to the strong growth in retail sales in the passenger vehicle market.
Of all passenger vehicles registered in September, 1,106,772 units were new energy vehicles (NEVs), accounting for a penetration rate of 51.98% and setting a new monthly record. The national subsidy for vehicle replacement has shifted towards encouraging consumer upgrades in the passenger car sector, offering higher subsidies for new energy vehicle purchases compared to gasoline vehicles with smaller engines.
In terms of brand registrations, BYD led the pack with 368,970 units registered in September, followed by Volkswagen and Toyota. Chinese brands dominated the top 20 list, with BYD, Wuling, Geely, Changan, and Chery ranking among the top positions. Tesla, the only foreign-owned brand in the top 20, ranked seventh with 71,049 vehicles registered.
In the new energy vehicle segment, BEV models held the largest share at 57.24%, followed by PHEVs at 31.93% and REEVs at 10.83%. BYD continued to lead the NEV registrations, with over 1.9 million units registered in the first three quarters of the year. Other Chinese brands like Li Auto, AITO, and AION also made significant contributions to the NEV market.
Overall, the Chinese passenger vehicle market saw robust growth in September 2024, driven by government incentives, holiday promotions, and a rise in consumer confidence. With a focus on new energy vehicles and efforts to reduce fierce competition, the market is poised for sustained growth in the coming months.
