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

13 hours ago

SMM Rare Earth Afternoon Trading Comment on September 10

13 hours ago

15 hours ago

Rare earth prices overall in the doldrums, variety trends diverge with stagnant trading [SMM Rare Earth Weekly Review]

[SMM Rare Earth Weekly Review: Rare earth prices overall in the doldrums, with divergent trends across products and stagnant trading] Pr-Nd oxide prices were reported at 730,000-732,000 yuan/mt, falling first and then stabilizing during the week. From the beginning of the week to Wednesday, prices pulled back continuously along with the futures market, and low-priced offers increased at one point. On Thursday, the futures market stopped falling and recovered, and suppliers tentatively raised their quotations. Low-priced sources were somewhat reduced compared with the earlier period, but downstream willingness to chase higher prices remained limited, and actual transaction volumes continued to be constrained. Demand-side order growth was not obvious, and raw material purchases were mainly based on buying on dips.

15 hours ago

17 hours ago

Rare Earth Market: Pr-Nd Stops Falling and Rebounds, Downstream Chasing Highs Limited with Scant Transactions [SMM Rare Earth Daily Review]

[SMM Rare Earth Daily Review: Pr-Nd in the rare earth market stops falling and rebounds; downstream buying interest remains limited, with few transactions] Overall, the rare earth market currently lacks a clear unilateral driver, with bullish and bearish factors intertwined across varieties, and prices and transactions continuing the previous divergence trend. Although Pr-Nd series saw a slight upward probe, downstream willingness to chase higher prices remains limited, with actual negotiations mostly centered on low-priced cargoes and no significant expansion in overall transaction volume. On the medium-heavy rare earth side, dysprosium series still faces shipment pressure with lukewarm inquiries, while terbium series prices remain stable for now, with buyers and sellers turning to a wait-and-see stance. In the short term, whether Pr-Nd prices can continue to move higher still depends on the actual implementation of downstream orders, and prices may remain in a narrow consolidation range.

17 hours ago