China’s domestic passenger vehicle (PV) market saw a slight year-over-year decrease of 1% in August 2024, with 1.905 million units retailed. However, there was a significant month-over-month increase of 10.8%, according to data from the China Passenger Car Association (CPCA). In the first eight months of the year, PV retail sales totaled 13.472 million units, showing a 1.9% increase compared to the same period last year.
The CPCA noted that the overall automobile market in China is showing signs of recovery, driven by policy support for scrapping and upgrading vehicles, as well as local trade-in incentives. Government efforts to curb unhealthy price competition have stabilized terminal prices, boosting market activity. The new energy vehicle (NEV) market is gaining momentum, with penetration exceeding 50% for the second consecutive month. Traditional oil-fueled vehicle performance followed a seasonal pattern, while NEV demand surged in August, continuing a strengthening trend in the second half of the year.
In August, China’s manufacturing industry PMI dropped to 49.1% due to factors like high temperatures, heavy rainfall, and a seasonal slowdown. However, recent policies increasing subsidies for vehicle upgrades have boosted incentives for new NEV purchases and oil-fueled vehicles, further stimulating NEV market demand.
Key characteristics of China’s PV market in August include a 17% month-over-month increase in NEV retail sales, reaching a record high of 54% retail penetration. There was also a slight slowdown in export growth, with NEV exports outperforming the cumulative export growth rate. China’s self-owned brands continued to show strength, while startups had mixed results and global brands lagged in electrification.
China’s wholly-owned brands accounted for 63.4% of the domestic PV market in August, with a 21% year-over-year increase in retail sales. Mainstream joint-venture brands saw a decline in retail sales, with German and Japanese brands losing market share. Premium passenger car sales also declined in August, holding an 11.6% market share.
Among the top 10 automakers by August PV retail sales, four companies showed rising momentum compared to the previous year. BYD had the highest sales volume and growth rate, followed by Chery Auto and SAIC-GM-Wuling.
Passenger vehicle manufacturers in China wholesaled 2.154 million units in August, with cautious production limiting wholesale volumes from reaching new highs. Leading automakers like BYD, Chery, Geely, Volkswagen, and Changan had strong wholesale performances.
China’s PV production reached 2.158 million units in August, with premium car production declining year over year. Passenger car manufacturers exported 413,000 vehicles last month, with China’s wholly-owned brands leading in exports. The recovery of markets in South America and other regions contributed to the growth in exports.
Overall, China’s PV market in August showed resilience and growth, driven by policy support, incentives for NEV purchases, and a shift towards electrification. The market dynamics continue to evolve, with domestic brands gaining strength and global brands adapting to the changing landscape.
