China’s Auto Market Shows Signs of Recovery in August 2024
Despite challenges such as high temperatures, heavy rainfall, and seasonal slowdowns, China’s manufacturing production and market demand weakened in August. However, the automotive market saw a glimmer of hope with the implementation of measures to support vehicle scrappage and renewal, leading to a surge in daily applications for subsidies.
New energy vehicles (NEVs) played a significant role in boosting market vitality, with strong performance and contributions to overall growth in vehicle production and sales. As central and local policies continue to support the automotive market, a positive outlook is expected in the coming months.
Heading into the traditional peak sales season of “Golden September and Silver October,” the auto industry is gearing up for various autumn auto shows and product launches to stimulate consumer demand.
In August 2024, China’s auto production rose by 9% month-on-month but dipped by 3.2% year-on-year. Auto sales also increased by 8.5% month-on-month, with a 5% decline year-on-year, according to the China Association of Automobile Manufacturers (CAAM).
On the NEV front, China saw a 29.6% year-on-year growth in production and a 30% surge in sales in August. NEVs accounted for 44.8% of total auto sales, indicating a strong market presence.
Exports of NEVs also showed positive momentum, with a 6.1% monthly increase and a 22% year-on-year growth. Domestic and overseas sales of NEVs contributed significantly to the overall market performance.
China’s auto exports experienced a 9% monthly and 25.4% yearly increase in August, with passenger vehicles and commercial vehicles both showing positive growth. The overall export volume for the first eight months of 2024 surged by 28.3% compared to the previous year.
Among the top vehicle exporters in China, Chery and Geely stood out with impressive growth in exports. BYD led the pack in overall export growth for the first eight months of the year.
