China Automobile Association: automobile production and sales continued to pick up in June. Production and sales increased both month-on-month and month-on-month.

SMM: according to the statistical analysis of the China Association of Automobile Manufacturers, automobile production and sales continued to pick up in June 2020, with monthly production and sales growing month-on-month and year-on-year growth, among which the growth rate of commercial vehicles was more obvious than the same period last year.

I. Overview of the overall operation

In June 2020, the overall recovery of China's economic operation continued to improve, the supply and demand of the manufacturing industry continued to pick up, the consumer market continued to improve, and the construction of major infrastructure projects accelerated. With the continuous promotion of automobile consumption policies around the country, the overall market performance is better than expected. Automobile production and sales have continued the momentum of recovery and maintained a good trend of development.

From the point of view of production and sales compared with the same period last year, automobile production and sales continued to show double-digit growth in that month. Passenger vehicles maintained positive growth, SUV and cross-type passenger vehicles continued to grow rapidly; commercial vehicles, driven by trucks, continued to show substantial growth, sales once again set a new record, and four types of models in trucks continued to maintain rapid growth, of which the sales of light trucks reached an all-time high.

Judging from the development trend of the industry, the uncertainty of the international epidemic still exists, overseas market demand has not yet recovered, and export-dependent enterprises are still not out of the predicament, which will affect part of the consumer demand; at the same time, after the consumption promotion policies in various places expire one after another, market demand may also decline as a result of overdraft. Therefore, enterprises in the industry should also focus on the changes in the domestic market and adjust the rhythm of production and sales in time.

II. The operation of the automobile industry in June 2020:

1. Auto production and sales hit an all-time high in June

In June, automobile production and sales completed 2.325 million and 2.3 million respectively, up 6.3 per cent and 4.8 per cent respectively from the previous month, and 22.5 per cent and 11.6 per cent respectively over the same period last year. It is worth mentioning that car production and sales this month set an all-time high in June.

From January to June, automobile production and sales completed 10.112 million and 10.257 million respectively, down 16.8% and 16.9% respectively from the same period last year. The decline continued to narrow, and the overall performance was better than expected.

2. Passenger car production and sales continue to grow

In June, the production and sales of passenger cars completed 1.798 million and 1.764 million respectively, an increase of 8.3% and 5.4% respectively over the previous month, and an increase of 12.2% and 1.8% respectively over the same period last year. Among them, the production growth rate was further expanded compared with last month, while the sales growth rate decreased by 5.2 percentage points. From the perspective of subdivided models, the sales volume of SUV has exceeded that of cars this month. From the point of view of sales growth, SUV and crossover passenger cars continue to show double-digit growth compared with the same period last year, but the growth rate decreases significantly; cars and MPV still show negative growth.

From a cumulative point of view, from January to June, the production and sales of passenger cars completed 7.754 million and 7.873 million respectively, down 22.5% and 22.4% respectively from the same period last year. From the data of subdivided models: car production and sales fell 25.9% and 26% respectively compared with the same period last year. Production and sales of SUV fell 14.6% and 14.9% respectively compared with the same period last year. MPV production and sales dropped by 48.1% and 45.7% respectively compared with the same period last year; production and sales of crossed passenger cars decreased by 20.4% and 19.8% respectively compared with the same period last year.

3. Monthly sales of commercial vehicles hit an all-time high again

In June, the production and sales of commercial vehicles completed 527000 and 536000 respectively, with production down 0.1% from the previous month, and sales increased by 3.1% from the previous month, up 77.9% and 63.1% respectively from the same period last year. Among them, sales hit an all-time high again after April. From the perspective of subdivided models, buses dropped slightly, trucks were driven by four types of models showed a substantial increase, of which light truck sales reached an all-time high, heavy truck sales reached an all-time high in June.

From January to June, the production and sales of commercial vehicles completed 2.359 million and 2.384 million respectively, an increase of 9.5 per cent and 8.6 per cent respectively over the same period last year. According to the production and sales of different models, the production and sales of passenger cars decreased by 9.6% and 12.4% respectively compared with the same period last year, while the production and sales of trucks increased by 11.5% and 10.8% respectively.

4. The production and sales of pick-up trucks have increased greatly.

Since May, the year-on-year growth of pickup production and sales has changed from negative to positive, and the growth rate of that month has further expanded. In June, the production and sales of pick-up trucks completed 58000 and 57000 respectively, an increase of 23.9% and 23.3% respectively over the previous month, and an increase of 93.6% and 74.5% respectively over the same period last year.

From January to June, the production and sales of pick-up trucks completed 212000 vehicles, down 7.0% and 7.5% respectively from the same period last year. In terms of fuel, the production and sales of gasoline vehicles completed 57000 and 58000 respectively, down 18.4% and 15.4% respectively from the same period last year. The production and sales of diesel vehicles both completed 153000 vehicles, down 2.3% and 4.4% respectively from the same period last year.

5. Production and sales of new energy vehicles declined compared with the same period last year

In June, the production and sales of new energy vehicles completed 102000 and 104000 respectively, down 25.0% and 33.1% respectively from the same period last year. Of these, the production and marketing of pure electric vehicles completed 79000 and 82000 respectively, down 31.9% and 37.6% respectively from the same period last year; the production and sales of plug-in hybrid vehicles completed 23000 and 21000 respectively, of which production increased by 17.0% and sales decreased by 6.0%; and 81 fuel cell vehicles were produced and sold, down 83.9% and 83.3% respectively.

From January to June, the production and sales of new energy vehicles completed 397000 and 393000 respectively, down 36.5% and 37.4% respectively from the same period last year. Of these, the production and sales of pure electric vehicles completed 301000 and 304000 respectively, down 40.3% and 39.2% respectively from the same period last year; the production and sales of plug-in hybrid vehicles completed 95000 and 88000 respectively, down 20.0% and 29.8% respectively from the same period last year; and fuel cell vehicles completed 390 and 403 vehicles respectively, down 66.5% and 63.4% respectively from the same period last year.

The data show that since March, the production and sales of new energy vehicles have shown a trend of restorative growth.

6. The market share of Chinese brand passenger cars is declining.

In June 2020, a total of 590000 Chinese brand passenger cars were sold, down 11.6% from the same period last year, accounting for 33.5% of the total passenger car sales, down 5 percentage points from the same period last year.

From January to June, a total of 2.854 million passenger cars were sold in China, down 29.0 percent from the same period last year, accounting for 36.3 percent of the total passenger car sales, down 3.4 percent from the same period last year.

Although the market share of Chinese brands of passenger cars has declined, there are also some brands rising against the trend, such as Red Flag, Chang'an and so on. The sales volume of some of their models has increased significantly, and the overall sales growth rate of the brand is also better than the average level of the market. In particular, the growth momentum of the Red Flag brand is very obvious. According to the statistics of the China Automobile Association, from January to June, the cumulative sales of the Red Flag brand exceeded 70, 000 (70045), an increase of more than 110% (110.71%) over the same period last year. I believe that in the future, under the leadership of these enterprises, the upward development of Chinese brands will be successful.

7. The market concentration of key enterprise groups is higher than that of the same period.

From January to June, the top 10 groups in car sales totaled 9.139 million vehicles, down 16.5 per cent from a year earlier. Accounted for 89.1% of total car sales, 0.4 percentage points higher than the same period last year.

8. Car exports declined compared with the same period last year.

In June, automobile companies exported 62000 vehicles, up 27.2% from the previous month and down 35.0% from the same period last year. In terms of car models, passenger vehicles exported 44000 this month, up 24.8 percent from the previous month, down 32.9 percent from the same period last year; and commercial vehicle exports were 18000, up 33.6 percent from the previous month, down 32.7 percent from the same period last year.

From January to June, automobile companies exported 386000 vehicles, down 20.9 percent from the same period last year. In terms of vehicle types, the export of passenger vehicles was 289000, down 12.0% from the same period last year, while the export of commercial vehicles was 97000, down 39.2% from the same period last year.

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