China Passenger Car Association: Retail sales of new energy vehicles in the market reached 241,000 units from May 1st to 12th, a year-on-year increase of 31%

According to the latest data from the China Passenger Car Association on May 15th, from May 1st to 12th, the retail sales of new energy vehicles in the Chinese market reached 241,000 units, a year-on-year increase of 31% compared to the same period last year, and a 10% increase compared to the previous month. The cumulative retail sales for this year have reached 2.692 million units, a 33% increase year-on-year. From May 1st to 12th, the wholesale volume of new energy passenger vehicles from manufacturers across the country was 213,000 units, a 36% increase year-on-year, but a 5% decrease compared to the previous month. The cumulative wholesale volume for this year has reached 2.953 million units, a 31% increase year-on-year.

The data shows that from May 1st to 12th, the retail sales of passenger cars in the Chinese market reached 559,000 units, a 9% decrease year-on-year, but a 28% increase compared to the previous month. The cumulative retail sales for this year have reached 6.926 million units, a 6% increase year-on-year. From May 1st to 12th, the wholesale volume of passenger cars from manufacturers across the country was 403,000 units, an 11% decrease year-on-year, and a 10% decrease compared to the previous month. The cumulative wholesale volume for this year has reached 7.953 million units, a 9% increase year-on-year.

Weak Start for National Passenger Car Retail Sales in May

In the first week of May, the daily average retail sales of passenger cars reached 47,000 units, a 9% decrease year-on-year, but a 28% increase compared to the previous month.

From May 1st to 12th, the retail sales of passenger cars reached 559,000 units, a 9% decrease year-on-year, but a 28% increase compared to the previous month. The cumulative retail sales for this year have reached 6.926 million units, a 6% increase year-on-year.

Last year, the "May Day" holiday was from April 28th to May 3rd, resulting in the registration of orders from the end of April in May. This year, the holiday was from May 1st to 5th, creating a holiday difference that favored the increase in sales in April but hindered the growth performance at the beginning of May.

As the market enters the off-peak season of summer, the automotive market is stabilizing. In April, the Purchasing Managers' Index (PMI) for the manufacturing industry, the Business Activity Index for the non-manufacturing industry, and the comprehensive PMI Output Index were 50.4%, 51.2%, and 51.7% respectively, all remaining in the expansion zone, which significantly promotes the stability of the automotive market.

The continued sluggishness in consumption of conventional fuel vehicles is a key factor restraining a full recovery of the automotive market. Policies such as the old-for-new program have reasonably ensured the replacement demand of the consumer group for fuel vehicles, which is of great significance for the stable development of the automotive market and is conducive to the gradual stabilization of the market in May.

Steady Recovery in National Passenger Car Manufacturer Sales in May In the first week of May, the average daily wholesale volume was 34,000 vehicles, a year-on-year decrease of 11% compared to the same period last year, and a month-on-month decrease of 10%.

From May 1st to 12th, the national passenger car manufacturers wholesaled 403,000 vehicles, a year-on-year decrease of 11% compared to the same period last year, and a decrease of 10% compared to the previous month; the cumulative wholesale volume this year reached 7.953 million vehicles, a year-on-year increase of 9%.

May of this year has a total of 21 working days, the same as last year, but this year's continuous 5-day holiday has compressed the production and sales time interval in May. As the summer market off-season approaches, the automotive market is entering a stable period. Some traditional fuel vehicle companies have increased holiday efforts to achieve production reduction, stabilize prices and demand, and rational production reduction has brought a stable supply-demand balance to the market.

With the implementation of the national policy of trading in old cars for new ones, corresponding policies in various regions, and the temporary cooling of new car prices due to market competition, the consumption enthusiasm of the market-watching group has been stimulated. The market is expected to enter a relatively good phase, and it is anticipated that the traditional fuel vehicle market will gradually regain vitality.

Strong Performance of the National Pickup Truck Market in April

In April 2024, the sales of pickup trucks reached 44,000 vehicles, a year-on-year increase of 4%, a decrease of 13% compared to the previous month, and remained at a relatively high level in nearly 5 years. Since the base number of pickup trucks in April of last year was relatively normal, the growth performance this year is still good. From January to April of this year, the sales of pickup trucks reached 173,000 vehicles, achieving a year-on-year growth of 5.1%, with an overall good performance.

The effect of allowing pickup trucks to enter cities is far less effective than the effect of pickup trucks going to rural areas, making the entry of pickup trucks into cities still a pseudo proposition. Pickup truck markets in the northwest, southwest, central, and northeast regions continue to strengthen. With the increasing efforts to boost consumption at the national level and the gradual removal of unreasonable measures restricting consumption, the demand for pickup trucks in cities with purchase restrictions and traffic restrictions remains sluggish. Due to the insufficient production capacity of international car companies and the significant supply-demand imbalance, China's good relations with European and American countries have led to a surge in overseas demand for Chinese automobiles since 2022, driving continuous growth in Chinese pickup truck exports from January to April 2024, with strong export performance from companies such as Great Wall Motors, Changan Automobile, SAIC-GM-Wuling, and JAC Motors.

In April of this year, the production of pickup trucks reached 44,000 vehicles, a year-on-year increase of 4.2%, while sales of pickup trucks increased by 4.4% year-on-year. Pickup truck exports accounted for 42% of sales in April, becoming the strongest export proportion among commercial vehicles. In the face of the pressure from the sluggish real estate market, China's pickup truck production and sales have remained relatively stable in the past two years, relying on exports. The performance of the domestic pickup truck market has been relatively stable, especially the growth in the sales proportion of pickup trucks in rural markets compared to last year has effectively offset the shrinkage of pickup trucks in major cities.

Upscaling of Price Segments in the National Passenger Car Market

According to the China Passenger Car Association brand data, the trend of the sales structure of price segments in the national passenger car market continues to rise, with a significant increase in the proportion of sales of high-end models and a decrease in the proportion of sales of mid-to-low-priced models. This trend is driven by consumer upgrades and the upgrading consumption of replacement groups.

In recent years, the prices of cars have shown a continuous upward trend, reaching 134,000 yuan in 2018, 153,000 yuan in 2020, 177,000 yuan this year, and 180,000 yuan in April The main reason is that the prices of hybrid and extended-range vehicles are relatively high, leading to structural driving force. At the same time, the average selling prices of existing fuel vehicles have also increased, with a significant increase in the high-endization of fuel vehicles driving a larger price increase.

Sales of high-end new energy vehicle models have increased significantly, with a 46% growth in the 300,000-400,000 price range and a 164% growth in the over 400,000 price range. Sales of mid-to-low-priced models have decreased, making the fuel vehicle market challenging.

In 2024, further strengthening the high-end consumption structure of the automobile market, there was a temporary downturn in retail sales of passenger vehicles in 2024. In April, domestic retail sales of fuel vehicles did not show strong recovery, restraining market growth, with export contributions supporting growth.

From a structural analysis perspective, the entry-level market is shrinking, with significant pressure from an unstable consumer base. The purchasing power of mid-to-low-end consumers is insufficient, and price wars have also erupted. The phenomenon of rising prices in the traditional fuel vehicle segment is not a favorable factor for promoting consumption. It is important for the general consumer group to have stronger purchasing power to buy entry-level vehicles, which is crucial for low-end consumption. Therefore, improving the purchasing power of the general population, achieving relative price balance in the automobile market, driving entry-level consumption, and enabling first-time buyers to enter the consumption market are essential.

China's automobile exports are the biggest highlight

China's automobile exports have been a recent growth highlight. China's automobile exports have evolved from primarily exporting components to a strong presence in complete vehicle exports, and now to the continuous strong performance of new energy vehicles, reflecting the strong development power and positive effects of the automobile industry.

New energy passenger vehicles are the strongest among the new three. China's new energy vehicles exported $11 billion in the first quarter of 2024, an 18% increase. There was a plateau in exports in February, but a rapid increase in March, reflecting new momentum in exports from domestic car companies. China's lithium battery exports in the first quarter of 2024 amounted to $13.2 billion, a 17% decrease, while the quantity of lithium battery exports in the first quarter of this year increased by 6%. The main export unit price saw a sharp decline of 22%, leading to a decrease in export value. China's solar cell exports in the first quarter amounted to $9 billion, a 31% decrease, while the quantity of solar cell exports in the first quarter of this year increased by 24.7% in terms of number and 29.5% in terms of weight. The main export unit price saw a sharp decline of nearly 46%, leading to a 31% decrease in export value.

China's automotive industry system capabilities have matured, and its future super competitiveness will gradually change the global automotive landscape. China's new energy vehicles have performed strongly in the pure electric vehicle markets of Europe and Southeast Asia. In the future, low-priced plug-in hybrids will also change the competitive landscape of developing countries' automotive markets. China's future automobile exports will strengthen the construction of its base, achieve overseas distribution of independent brands from rural to urban areas, and make a breakthrough in the huge market development, becoming China's strongest business card in foreign trade