China's auto production, sales slightly rise YoY in May 2024

Beijing (Gasgoo)- In May, China's auto sales experienced modest growth both month-on-month and year-on-year. The production and sales of new energy vehicles (NEVs) and auto exports continued to grow rapidly, with Chinese indigenous brands maintaining strong performance.

The Chinese auto market has recently seen several positive developments. China’s Ministry of Finance allocated special funds to support the scrapping and renewal of old vehicles. Over 30 provinces and cities have introduced local subsidies, and multiple car manufacturers have launched trade-in purchase incentives to encourage auto consumption. The old-for-new vehicle replacement program is off to a strong start. Additionally, the government issued several campaigns to address NEV consumption gaps in rural areas, propose gradually lifting NEV purchase restrictions and implementing supportive policies for NEV circulation, fully unleashing consumption potential.

However, the domestic demand growth in China's auto market remains relatively slow, competition in the industry is intensifying, and international trade protectionism continues to pose significant challenges. The auto industry faces considerable pressure and requires effective measures to ensure stable development.

In May 2024, a total of 2.372 million vehicles were produced in China, representing a slight 1.4% dip from the previous month and a 1.7% rise from the previous year, according to data from the China Association of Automobile Manufacturers (CAAM). In the meantime, China sold 2.417 million vehicles, which climbed 2.5% month on month and 1.5% year on year.

In the first five months of this year, China’s cumulative auto production and sales volumes still topped that of a year ago at 6.5% and 8.3%, respectively, which came in at 11.384 million vehicles and 11.496 million vehicles.

Automakers in China produced and sold 940,000 and 955,000 NEVs in the past month, representing a respective 31.9% and 33.3% surge year-over-year. Among which, 856,000 units were sold domestically, jumping 16.3% from the previous month while leaping 40.8% from the previous year. In the meantime, NEV exports stood at 99,000 units in May, down 13.3% month on month and 9% year on year.

In the Jan.-May period, China’s NEV production and sales volumes amounted to 3.926 million units and 3.895 million units, surging 30.7% and 32.5% from the previous year, respectively. NEVs made up 33.9% of China’s auto sales in the period.

Of the NEVs sold in the first five months of this year, 3.376 million units were consumed domestically in China, spiking 35.9% compared to the same span last year. At the same time, automakers in China exported 519,000 NEVs to overseas markets, which increased 13.7% year on year.

In the fifth month of 2024, China shipped 481,000 vehicles to overseas markets, representing a 4.4% slip month-on-month but a 23.9% jump year-on-year.

Among the vehicles exported in May, about 397,000 units were passenger cars, dipping 7.4% from April while growing 22.1% from a year ago. Meanwhile, the country’s commercial vehicle export volume reached 840,000 units, rising 12.6% month over month and surging 32.7% year over year.

In the first five months of this year, automakers in China cumulatively shipped 2.308 million vehicles overseas, up 31.3% from a year ago. Year-to-date exports of passenger cars came in at 1.937 million units, indicating a 32% increase year-on-year. In the meantime, export volume of commercial vehicles amounted to 372,000 units, jumping 27.9% from a year earlier.

Among the top ten vehicle exporters, Chery ranked the first by exporting 92,000 vehicles in May, boasting a year-on-year increase of 24.8%, accounting for 19.2% of the country’s total auto exports. Compared to the same period last year, BYD showed the most significant growth with export volume reaching 38,000 units in May, indicating a 2.4-fold increase.

From January to May, BYD exported 179,000 units in total, representing a 1.6-fold year-on-year spike. Meanwhile, Great Wall Motor achieved a 64.1% year-on-year leap in year-to-date export volume, which stood at 239,000 units.