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

7 hours ago

China Rare Earth Group Reviews H1 Innovation, Outlines H2 Strategy at 2026 Mid-Year Meeting

On July 28, China Rare Earth Group held its 2026 mid-year science and technology work meeting at headquarters, systematically summarizing H1 scientific and technological innovation work and comprehensively deploying key tasks for H2. The meeting noted that the Group's scientific and technological innovation work made steady progress in H1, closely focused on the core mission of serving national strategic security, and achieved positive progress in areas such as research system construction, key technology breakthroughs, innovation platform establishment, and key project layout. The innovation landscape shifted from "a single flower blooming" to "a hundred flowers in full bloom."

7 hours ago

Hangzhou Hosts Baotou Rare Earth Innovation Competition to Foster Industry and Talent Growth

On July 24, the Hangzhou sub-competition of the “Rare Earth Leads the Future, Innovation Wins in Lucheng” Baotou Rare Earth Future Industry Innovation and Entrepreneurship Competition was held. The competition was hosted by the Baotou Municipal Government and organized by the Office of the Talent Work Leading Group of the Municipal Party Committee, the Municipal Science and Technology Bureau, the Administrative Committee of the Rare Earth High-Tech Industrial Development Zone, and other units, aiming to attract talents and promote innovation through the competition and to foster deep integration between Baotou’s rare earth industry and the scientific and innovation resources of the Yangtze River Delta. The competition attracted numerous universities and research institutes, innovation teams, and technology enterprises from the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing, and other regions to compete on the same stage.

7 hours ago

China Leads in Rare Earths, Aims for "Rare Earth + Steel" Synergy to Boost Industry Efficiency

Li Yiren, Vice President of the China Iron and Steel Association (CISA) and President of the Metallurgical Industry Sub-Council of the China Council for the Promotion of International Trade (CCPIT), introduced that China leads the world in rare earth reserves, capacity, and separation and purification technologies. Applying high-abundance rare earth elements such as lanthanum and cerium to steel materials can not only diversify and efficiently utilize China’s advantageous rare earth resources, but also drive the transformation and upgrading of the steel industry, achieving the synergistic development goal of “rare earth + steel” for enhanced efficiency.

7 hours ago