Passenger car Association: retail sales of 1.58 million passenger cars in June accounted for 38% of the total.

On July 8th, the Federation released passenger car production and sales figures for June. According to the data, narrow passenger car production in June was 1.503 million, down 13.9 per cent from a year earlier; retail sales of narrow passenger cars in June were 1.575 million, down 5.1 per cent from a year earlier; and wholesale sales of narrow passenger cars were 1.531 million in June, down 10.2 per cent from a year earlier.

Cui Dongshu, secretary general of the bus Federation, pointed out that from the perspective of retail and wholesale passenger car sales in June, the passenger car market showed a state of hot terminals and relatively insufficient supply from manufacturers. "in June, retail sales of passenger cars in a narrow sense were better than wholesale sales as a whole, and this performance was better than expected, mainly due to the relatively excellent performance of independent brands, and new energy vehicle products played a pulling role."

Among them, the retail volume of independent brands was about 600000 vehicles in June, accounting for 38 per cent of the domestic retail share, up 16 per cent from the same period last year and 2 per cent month-on-month. Cui Dongshu believes that the retail volume of independent brands showed a state of growth in June, reflecting the toughness of the industrial chain shown by independent head enterprises in the environment of lack of cores. At the same time, independent brands such as BYD, GAC Ean, Changan, Hongqi and other brands have achieved significant growth in the field of new energy, indirectly promoting the market share of independent brands.

Retail sales of mainstream joint venture brands were 730000 in June, down 18 per cent from a year earlier and 7 per cent from May. Among the mainstream joint venture brands, Japanese and German brands have fallen to varying degrees, while the United States is gradually recovering, with retail share reaching 10.8% in June, an increase of 0.6 percentage points over the same period last year.

Retail sales for luxury brands were about 250000 in June, down 1 per cent from a year earlier and 4 per cent from May. The bus Association pointed out that luxury cars continue to maintain the characteristics of structural stability, which reflects that the demand for high-end purchase is still strong under the trend of consumer upgrading.

Wholesale sales of narrow passenger cars were 1.531 million in June, down 4.9 per cent from May, 10.2 per cent from a year earlier and 9 per cent from June 2019. From January to June this year, domestic wholesale sales of passenger cars were 9.817 million, an increase of 28 percent over the same period last year and a decrease of 100000 compared with the same period in 2019.

The decline in wholesale sales in June is directly related to the decline in production. Recently, affected by the shortage of chips, major manufacturers are living a tight life and taking flexible measures to stabilize production and sales. In addition, as wholesale sales decline, manufacturers' inventories continue to decline. According to the data provided by the bus Federation, at the end of June, manufacturers' inventories decreased by 20, 000 vehicles month-on-month, and channel inventory decreased by 160000 vehicles. From January to June this year, manufacturers' inventory decreased by 230000 vehicles, a record high for the same period in the previous year.

Domestic new energy production and sales increased significantly in June, including 217000 new energy products in June, an increase of 170.8% over the same period last year, retail sales of 223000 vehicles, an increase of 169.9% over the same period last year, and wholesale sales of 227000 vehicles, an increase of 165.7% over the same period last year.

The car Association pointed out that the new energy passenger car market showed a diversified development trend in June, among which the automobile groups with strong wholesale sales were BYD, Tesla China, SAIC GM Wuling and SAIC passenger cars.

Among the new power car companies, sales in June, such as Weilai, ideal, Xiaopeng, Hezhong, Zero, and so on, have achieved positive growth compared with the same period last year and month-on-month. The market acceptance of new energy products of luxury brands and mainstream joint venture brands is still not high, but Volkswagen-branded new energy vehicles sold 8875 vehicles in June, accounting for 47 per cent of the market share of mainstream joint venture new energy vehicles. In addition, the domestic retail penetration rate of new energy vehicles in June was 14%, of which the new energy penetration rate of independent brands was 28.4%; the penetration rate of new energy products in luxury cars was 14.2%, and that of new energy vehicles in mainstream joint venture brands was only 2.2%.

With regard to the expectation of passenger cars across the country in July, the Federation pointed out that due to the influence of factors such as the hot weather and high-temperature holidays of manufacturers, first-purchase and trade-in users will not show greater enthusiasm for buying cars in July, so July has been the trough of the year over the years, and in the environment of lack of cores, the car market in July this year will continue the trough of the same period over the years.

Generally speaking, the car market in the first half of this year is dominated by destocking, and there will be a trend of replenishing inventory in the second half of this year. At the same time, the Federation predicts that the shortage of chips is expected to be alleviated in the third quarter, and wholesale sales in the passenger car market are expected to pick up strongly from August.