China’s Passenger Vehicle Retail Sales Surge in October 2024
In October 2024, China’s retail sales of passenger vehicles reached an impressive 2.261 million vehicles, marking an 11.3% increase compared to the previous year and a 7.2% rise from the previous month, as reported by the China Passenger Car Association. This growth trend continued throughout the first ten months of the year, with total retail sales of passenger vehicles reaching 17.835 million vehicles, achieving a 3.2% growth over the previous year.
The retail sales data revealed that conventional oil-fueled vehicle sales in China totaled 1.066 million vehicles in October, showing a 16.1% decline year-on-year but an 8.1% increase from the previous month. From January to October, retail sales of conventional oil-fueled vehicles in the country amounted to 9.508 million vehicles, down 16% year-on-year.
One of the standout figures from October was the retail penetration rate of new energy passenger vehicles (NEPVs) in China, which stood at an impressive 52.9%.
All provinces in China have implemented vehicle trade-in subsidies and other measures to boost car purchases, resulting in a new wave of market growth. The national vehicle scrappage policy and local trade-in incentives have driven demand, with the market experiencing strong growth in October, further reinforcing the “Silver September, Golden October” sales effect.
The national scrappage subsidy offers varying incentives, with NEPV buyers receiving a 20,000-yuan subsidy and those purchasing fuel vehicles with engine displacements of up to 2.0 liters receiving 15,000 yuan. The higher subsidies for NEPVs in local trade-in schemes have led to an increase in demand for new energy vehicles, particularly in the entry-level battery-electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) markets.
In October, China’s wholly-owned passenger vehicle brands sold 1.48 million vehicles, representing a 32% surge over the previous year and an 11% rise from the previous month. Domestic retail market share for these brands reached 65.7% in the past month, an increase of 10.1 percentage points from the previous year.
Mainstream joint-venture brands saw retail sales of 570,000 vehicles in October, a 17% decrease compared to the same month last year but an 8% increase month-on-month. German brands held a 15.8% retail market share, while Japanese brands had a 12.9% share, and American brands accounted for 4% of the market.
Luxury vehicle retail sales in October totaled 210,000 vehicles, with a market share of 9.2%, down 7% from the previous year.
In terms of wholesales, automakers in China wholesaled 2.732 million units of passenger cars in October, marking an 11.5% growth year-on-year and a 9.1% increase month-on-month. Year-to-date wholesale volumes reached 21.176 million vehicles in the first ten months of the year, showing a 4.4% year-on-year increase.
China’s self-owned brands led wholesales in October with 1.91 million vehicles, a 30% increase from the previous year. Mainstream joint-venture brands wholesaled 570,000 vehicles, while luxury vehicle wholesales reached 250,000 vehicles in the past month.
Overall, China’s auto exports continued to see robust growth in 2024. The monthly passenger vehicle export volume reached 441,000 units in October, a 13% increase year-on-year. Year-to-date passenger vehicle exports totaled 3.991 million units, with NEPVs comprising 27.1% of the total exports in October.
The automotive industry in China continues to show resilience and growth, with various incentives and policies driving demand and shaping market trends.
