NEV Production and Sales Continue to Grow, Rare Earth Permanent Magnets Market Shows Significant Polarization [SMM Analysis]

According to statistics from CAAM, in October 2024, China's NEV production and sales continued to show strong growth. Specifically, NEV production in October reached 1.463 million units, and sales reached 1.43 million units, up 48% and 49.6% YoY, respectively. From the beginning of 2024 to October, cumulative production and sales were 9.779 million units and 9.75 million units, with YoY growth rates of 33% and 33.9%. These figures indicate that China's NEV market remains on a robust development trajectory.

NEV, as a major end-use product in the rare earth permanent magnets market, its production and sales changes directly impact the order situation in the magnet materials market. According to an SMM survey, the current growth in orders for magnet materials mainly stems from the NEV sector, while orders from other sectors have not shown significant increases, leading to a substantial decrease in overall order volume compared to Q4 of last year. Although the continuous growth in NEV production and sales may drive an increase in orders for magnet materials, the market shows significant polarization. New orders are primarily concentrated among large leading enterprises, while small and medium-sized enterprises have not seen noticeable order growth. Market activity remains low, and the atmosphere is relatively subdued.

In summary, although the continuous rise in NEV production and sales may boost orders in the magnet materials market, the increase is expected to be limited and likely concentrated among a few enterprises.