New Energy vehicles achieve double year-on-year growth in production and sales in May-Shanghai Metals Market

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New Energy vehicles achieve double year-on-year growth in production and sales in May

Translation 08:58:32AM Jun 13, 2019 Source:Securities Daily

SMM News: in May, China's automobile production and sales fell again compared with the same period last year, and the grim situation of the automobile market has not improved. Among them, sales of the top 10 car companies only SAIC, Dongfeng, Guangzhou Auto sales increased slightly compared with the previous month.

The reporter noted that since the beginning of this year, the market share of Chinese brand passenger cars has continued to decline, from 41.2% at the beginning of the year to 36.2% in May, and has been below the "warning line" of 40% market share for two months in a row. In contrast, Japanese and American sales rose slightly, other foreign brands fell, and South Korea fell even more sharply.

Xu Haidong, assistant secretary general of the CAAC Association, said that according to the completion of the production and marketing data in May, the overall downward trend of production and sales in the industry has not been effectively alleviated. On the one hand, the momentum of consumption has not been effectively improved, on the other hand, production enterprises take the initiative to slow down the pace of production and marketing, reducing the pressure on the end market. Passenger cars are still in the doldrums. However, with the passage of time, the manufacturer of six production capacity gradually released, consumers wait-and-see attitude alleviated, the second half of the decline is expected to be alleviated.

Compared with the traditional car sales continue to decline, new energy vehicle sales in May out of the month-on-month decline trend, also achieved 1.8% year-on-year growth, but the rapid growth trend has never returned.

According to the China Association of Automobile Manufacturers, car production in May was 1.8483 million units, down 9.93 percent from the previous month, down 21.16 percent from the same period last year, and sales of 1.9126 million vehicles were down 3.43 percent from the previous month and 16.40 percent from the same period last year. Of these, 1.4914 million passenger cars were produced, down 10.18 percent from the previous month, down 23.69 percent from the same period last year, and sales of 1.5612 million vehicles were down 0.87 percent from the previous month and 17.37 percent from the same period last year.

From the perspective of passenger car varieties, compared with the previous month, MPV sales in May this year showed a faster growth, SUV, cars and cross passenger cars all declined; compared with the same period last year, sales of the four major categories of passenger cars showed a rapid decline, cross passenger vehicles fell even more significantly, down as much as 46.03 per cent from the same period last year.

In May, production and sales of new energy vehicles were 112100 and 104400 respectively, an increase of 16.91 per cent and 1.80 per cent respectively over the same period last year. Among them, the production and sales of pure electric vehicles were 93600 and 83200 respectively, an increase of 21.75% and 1.35% respectively over the same period last year, and the production and marketing of plug-in hybrid vehicles were 18300 and 20900 respectively, with production down 4.24% and sales up 2.24% over the same period last year.

The reporter noted that compared with the double-digit growth of new energy vehicles in the past, sales of new energy vehicles have obviously reached a low ebb in the last two months. Sales of new energy passenger vehicles rose 18.1 percent in April compared with the same period last year, but only 1.80 percent in May.

Cui Dongshu, secretary-general of the Federation, said that the strong withdrawal of subsidies from the New deal in 2019, coupled with the withdrawal of land subsidies from the market, has brought a more standardized market environment for new energy vehicles. "June is the transitional deadline for 2018 new energy vehicle subsidy standards, and the superimposed sixth is about to be implemented, and the last sprint of existing new energy models will still be reflected." Cui Dongshu said.

Chinese brands have been most affected by the continued decline in the car market. In April, Chinese brand passenger cars fell 29.83 percent from the previous month, down 27.88 percent from the same period last year, accounting for 37.13 percent of the total passenger car sales, and market share fell 4.13 percentage points from the previous month. In May, Chinese brand passenger car sales totaled 564600, down 3.44 percent from the previous month, down 28.11 percent from the same period last year, accounting for 36.17 percent of the total passenger car sales, and the share was 0.96 percentage points lower than the previous month.

Chen Shihua, assistant secretary-general of the CAAC, said earlier that 40 per cent of the market share was an important boundary for judging whether the market of its own brand was good or bad. The market share has fallen below 40% for two months in a row, a sign of a huge crisis for Chinese brands.

According to Lang Xuehong, deputy secretary-general of the China Automobile Circulation Association, in May 2019, the auto dealer inventory early warning index was 54.0 percent, down 7.0 percentage points from the previous month and up 0.3 percentage points from a year earlier, and the inventory early warning index was above the warning line.

Specific to enterprises, in May, car sales ranked the top 10 enterprises are: SAIC, Dongfeng, FAW, GAC, BAIC, Changan, Geely, Great Wall, brilliance and Chery. Compared with the previous month, SAIC, Dongfeng and GAC sales increased slightly, while other companies showed varying degrees of decline, especially Great Wall, brilliance and Geely. In May, the 10 companies sold a total of 1.7033 million vehicles, accounting for 89.06 per cent of total car sales.

When will the market pick up? Xu Haidong said that in the second half of the year, with the continuous increase of models that meet the six national standards, as well as the continued effectiveness of a series of policy measures such as tax cuts and fees, in particular, in early June, the National Development and Reform Commission, the Ministry of Ecological Environment, and the Ministry of Commerce jointly issued the Circular on promoting the Renewal and upgrading of key Consumer goods and the Recycling of Resources (20119-2020), which brought about a relatively positive role for the passenger car market. Production and sales of new energy vehicles will also continue to maintain rapid growth.

Key Words:  Cars  batteries  new sources of energy 

New Energy vehicles achieve double year-on-year growth in production and sales in May

Translation 08:58:32AM Jun 13, 2019 Source:Securities Daily

SMM News: in May, China's automobile production and sales fell again compared with the same period last year, and the grim situation of the automobile market has not improved. Among them, sales of the top 10 car companies only SAIC, Dongfeng, Guangzhou Auto sales increased slightly compared with the previous month.

The reporter noted that since the beginning of this year, the market share of Chinese brand passenger cars has continued to decline, from 41.2% at the beginning of the year to 36.2% in May, and has been below the "warning line" of 40% market share for two months in a row. In contrast, Japanese and American sales rose slightly, other foreign brands fell, and South Korea fell even more sharply.

Xu Haidong, assistant secretary general of the CAAC Association, said that according to the completion of the production and marketing data in May, the overall downward trend of production and sales in the industry has not been effectively alleviated. On the one hand, the momentum of consumption has not been effectively improved, on the other hand, production enterprises take the initiative to slow down the pace of production and marketing, reducing the pressure on the end market. Passenger cars are still in the doldrums. However, with the passage of time, the manufacturer of six production capacity gradually released, consumers wait-and-see attitude alleviated, the second half of the decline is expected to be alleviated.

Compared with the traditional car sales continue to decline, new energy vehicle sales in May out of the month-on-month decline trend, also achieved 1.8% year-on-year growth, but the rapid growth trend has never returned.

According to the China Association of Automobile Manufacturers, car production in May was 1.8483 million units, down 9.93 percent from the previous month, down 21.16 percent from the same period last year, and sales of 1.9126 million vehicles were down 3.43 percent from the previous month and 16.40 percent from the same period last year. Of these, 1.4914 million passenger cars were produced, down 10.18 percent from the previous month, down 23.69 percent from the same period last year, and sales of 1.5612 million vehicles were down 0.87 percent from the previous month and 17.37 percent from the same period last year.

From the perspective of passenger car varieties, compared with the previous month, MPV sales in May this year showed a faster growth, SUV, cars and cross passenger cars all declined; compared with the same period last year, sales of the four major categories of passenger cars showed a rapid decline, cross passenger vehicles fell even more significantly, down as much as 46.03 per cent from the same period last year.

In May, production and sales of new energy vehicles were 112100 and 104400 respectively, an increase of 16.91 per cent and 1.80 per cent respectively over the same period last year. Among them, the production and sales of pure electric vehicles were 93600 and 83200 respectively, an increase of 21.75% and 1.35% respectively over the same period last year, and the production and marketing of plug-in hybrid vehicles were 18300 and 20900 respectively, with production down 4.24% and sales up 2.24% over the same period last year.

The reporter noted that compared with the double-digit growth of new energy vehicles in the past, sales of new energy vehicles have obviously reached a low ebb in the last two months. Sales of new energy passenger vehicles rose 18.1 percent in April compared with the same period last year, but only 1.80 percent in May.

Cui Dongshu, secretary-general of the Federation, said that the strong withdrawal of subsidies from the New deal in 2019, coupled with the withdrawal of land subsidies from the market, has brought a more standardized market environment for new energy vehicles. "June is the transitional deadline for 2018 new energy vehicle subsidy standards, and the superimposed sixth is about to be implemented, and the last sprint of existing new energy models will still be reflected." Cui Dongshu said.

Chinese brands have been most affected by the continued decline in the car market. In April, Chinese brand passenger cars fell 29.83 percent from the previous month, down 27.88 percent from the same period last year, accounting for 37.13 percent of the total passenger car sales, and market share fell 4.13 percentage points from the previous month. In May, Chinese brand passenger car sales totaled 564600, down 3.44 percent from the previous month, down 28.11 percent from the same period last year, accounting for 36.17 percent of the total passenger car sales, and the share was 0.96 percentage points lower than the previous month.

Chen Shihua, assistant secretary-general of the CAAC, said earlier that 40 per cent of the market share was an important boundary for judging whether the market of its own brand was good or bad. The market share has fallen below 40% for two months in a row, a sign of a huge crisis for Chinese brands.

According to Lang Xuehong, deputy secretary-general of the China Automobile Circulation Association, in May 2019, the auto dealer inventory early warning index was 54.0 percent, down 7.0 percentage points from the previous month and up 0.3 percentage points from a year earlier, and the inventory early warning index was above the warning line.

Specific to enterprises, in May, car sales ranked the top 10 enterprises are: SAIC, Dongfeng, FAW, GAC, BAIC, Changan, Geely, Great Wall, brilliance and Chery. Compared with the previous month, SAIC, Dongfeng and GAC sales increased slightly, while other companies showed varying degrees of decline, especially Great Wall, brilliance and Geely. In May, the 10 companies sold a total of 1.7033 million vehicles, accounting for 89.06 per cent of total car sales.

When will the market pick up? Xu Haidong said that in the second half of the year, with the continuous increase of models that meet the six national standards, as well as the continued effectiveness of a series of policy measures such as tax cuts and fees, in particular, in early June, the National Development and Reform Commission, the Ministry of Ecological Environment, and the Ministry of Commerce jointly issued the Circular on promoting the Renewal and upgrading of key Consumer goods and the Recycling of Resources (20119-2020), which brought about a relatively positive role for the passenger car market. Production and sales of new energy vehicles will also continue to maintain rapid growth.

Key Words:  Cars  batteries  new sources of energy