Strong Growth in China's Automotive Market in 2024: NEVs Dominate the Mainstream [SMM Analysis]

Published: Jan 19, 2025 23:40

Save

[SMM Analysis: Strong Growth in China's Auto Market in 2024, NEVs Dominate the Mainstream] According to the latest data released by CAAM, China's auto market continued to perform strongly in December 2024. Driven by the trade-in policy, the market remained vibrant, and year-end efforts by enterprises to push for target significantly boosted car purchase demand.

SMM, January 19: According to the latest data released by CAAM, China's automobile market continued to perform strongly in December 2024. Driven by the trade-in policy, market vitality remained robust, and year-end efforts by enterprises to push for targets significantly boosted car purchase demand. This month, automobile production reached 3.366 million units, while sales hit 3.489 million units. Production decreased by 2% MoM, but sales were up 5.2% MoM. YoY growth rates for production and sales were 9.3% and 10.5%, respectively.

In the NEV sector, December's performance was particularly remarkable, with production reaching 1.53 million units and sales hitting 1.596 million units. Although production declined by 2.3% MoM, sales increased by 5.6% MoM. YoY growth rates for production and sales were 30.5% and 34%, respectively. NEV sales accounted for 45.8% of total automobile sales.

Looking ahead to the full year, China's automobile market in 2024 is expected to show steady growth. Annual automobile production totaled 31.282 million units, while sales reached 31.436 million units, up 3.7% and 4.5% YoY, respectively. The NEV sector performed even better, with annual production totaling 12.888 million units and sales reaching 12.866 million units, up 34.4% and 35.5% YoY, respectively. NEV sales accounted for 40.9% of total automobile sales, an increase of 9.3 percentage points from the previous year.

Within the NEV composition, EV sales accounted for 60%, a decrease of 10.4 percentage points compared to 2023. However, the share of plug-in hybrid car sales rose to 40%, with the same increase of 10.4 percentage points. This indicates a gradual expansion of the plug-in hybrid market and a growing trend of diversified consumer preferences.

》Apply for a Free Trial of the SMM Metal Industry Chain Database

NEVs are one of the key end-use sectors for the rare earth permanent magnets industry. Their rapid development has significantly driven the sustained increase in demand for rare earth permanent magnets. In 2024, the NEV sector maintained strong growth momentum. By year-end, while demand growth in most downstream end-use sectors of the rare earth industry slowed, NEV demand for rare earth permanent magnets remained relatively high. By 2025, supported by various favorable policies, the NEV market is expected to continue its rapid growth, thereby sustaining high demand for rare earth permanent magnet materials.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

Pensana Advances $250M Angola Rare Earth Mine, Targets 2027 Production and Major Heavy Rare Earth Output

[SMM Rare Earth Flash] London-listed Pensana announced that construction of the Longonjo rare earth mine in Angola is progressing as planned, with a total investment of $250 million, targeting first commissioning and production of mixed rare earth carbonate (MREC) in 2027. The mine has a life of 20 years, with an initial annual output of 20,000 mt, expanding to 40,000 mt in the fourth year. The company is optimizing the heavy rare earth recovery circuit, targeting annual production of dysprosium and terbium exceeding 122 mt, and is expected to become one of the largest heavy rare earth producers in the Western world. Pensana has signed a non-binding memorandum of understanding with Toyota Tsusho for the potential off-take of up to 20,000 mt of mixed rare earth carbonate per year for five years. The project is also supported by offtake framework agreements with multiple partners.

6 hours ago

Aldoro Resources Reports Positive Hydrometallurgical Test Results at Kameelburg Rare Earth Deposit

[SMM Rare Earths Briefing] Aldoro Resources announced that the hydrometallurgical tests on its Kameelburg rare earth–strontium–niobium deposit in Namibia have yielded positive results. Using a direct acid leaching process at ambient temperature and pressure, the strontium extraction rate exceeded 99%, and the rare earth recovery rate reached 72%, without requiring crushing, roasting, or solvent extraction, significantly reducing development costs. Meanwhile, drilling has discovered high-grade niobium mineralization at the margin of the carbonatite, with an intersection of 170 meters showing total rare earth oxide grade of 0.81%, strontium at 3.21%, and niobium at 0.43%. The company stated that this process substantially lowers project risk and confirms Kameelburg as one of the most important undeveloped rare earth–strontium deposits globally.

6 hours ago

7 hours ago

US Rare Earths to Invest Over $203M in France for Rare Earth Expansion by 2030

U.S. rare earth developer U.S. Rare Earths (USAR) plans to invest more than $203 million in France by 2030 to expand capacity for rare earth element separation, metals, alloys and magnet manufacturing. USAR said on Monday this expansion builds on French initiatives, including the LCM rare earth metal and alloy production facility in Lacq, an investment in Carester SAS, and investment from European private investment platform InfraVia Capital Partners.

7 hours ago