On September 9, the China Passenger Car Association (CPCA) released data showing that retail sales of narrow-sense passenger vehicles reached 1.905 million units in August, a year-on-year decrease of 1.0% but an increase of 10.8% compared to the previous month.
Among these, retail sales of new energy passenger vehicles reached 1.027 million units in August, marking a year-on-year increase of 43.2% and a month-on-month increase of 17.0%. Meanwhile, retail sales of conventional fuel vehicles were 870,000 units, representing a year-on-year decline of 28% but a month-on-month increase of 4%.
On September 9, 2024, in Nanchang, Jiangxi province, at the new energy vehicle production workshop.
The data indicates that the retail penetration rate of new energy vehicles reached 53.9% in August, surpassing that of fuel vehicles once again after July.
The CPCA noted that following the release of several measures by the National Development and Reform Commission and the Ministry of Finance on July 25 to boost large-scale equipment updates and trade-ins for consumer goods, the standards for vehicle retirement and replacement subsidies have been raised. The new subsidy standard now offers 20,000 yuan for purchasing new energy passenger vehicles and 15,000 yuan for purchasing fuel passenger vehicles with an engine displacement of 2.0 liters or less. As there is a 5,000 yuan advantage in subsidies for the retirement of new energy vehicles compared to fuel vehicles, consumer enthusiasm in the new energy vehicle market has further increased, with strong growth in entry-level pure electric vehicles and narrow-sense plug-in hybrids.
Self-owned brands that are positively correlated with the growth of new energy vehicles have thrived under policy incentives. In August, retail sales of self-owned brands reached 1.2 million units, a year-on-year increase of 21% and a month-on-month increase of 14%. That month, the domestic retail market share of self-owned brands was 63.4%, an increase of 11.4 percentage points compared to the same period last year. In 2024, the cumulative market share of self-owned brands reached 58%, an increase of 7.8 percentage points year-on-year.
Top traditional automakers have performed remarkably in their transformation and upgrades, with significant increases in brand market share forcompanies like BYD, Chery, Geely, and Changan.
In August, mainstream joint venture brands reported retail sales of 480,000 units, a year-on-year decline of 27%. The retail market share of German brands was 16.6%, down 3.5 percentage points year-on-year, while Japanese brands had a retail market share of 12.6%, down 4.2 percentage points year-on-year. American brands reached a retail market share of 5.7%, down 2.9 percentage points year-on-year.
Retail sales of luxury vehicles in August amounted to 220,000 units, reflecting a year-on-year decline of 21% but a month-on-month increase of 3%. The retail market share of luxury brands stood at 11.6%, down 3 percentage points year-on-year.
In terms of manufacturer sales, BYD continued to lead the market. BYD's sales in August reached 373,100 units, a growth of 35.97% year-on-year, setting a new high for monthly sales. This marks the sixth consecutive month in which their monthly sales have surpassed 300,000 units. Among these, plug-in hybrid vehicles remained BYD's core product, accounting for 60% of overall passenger vehicle sales.
Chery's sales in August reached 211,879 units, representing a year-on-year increase of 23.7%. All three of its major brands maintained positive growth within its sales composition.
Geely sold 181,229 units in August, an increase of 21% year-on-year, mainly driven by the growth of several new energy brands under its umbrella. Specifically, the Galaxy series sold 26,510 units in August, up by 138%; and Zeekr sold 18,015 units, a 46% increase.
Changan Automotive experienced significant fluctuations; after a sharp decline in July, the drop in August was less pronounced. Changan's self-owned sales recorded 151,382 units, a year-on-year decline of 10.65%, but an increase of 8.78% month-on-month.
Great Wall Motors reported sales of 94,461 units in August, reflecting a year-on-year decline of 17.4%. Among its five main brands, the Tank brand was the only one to show positive growth with sales of 16,350 units in August.
As for joint venture brands, the decline in Japanese brands was expected. Although joint venture companies have not yet disclosed their sales figures, their individual reported sales in China indicate a worsening trend. Toyota has experienced a year-on-year decline for seven consecutive months, with sales of 152,100 units, down 13.5%; Honda has also faced a seven-month year-on-year decline with sales of 56,959 units, down 44.3%; and Nissan has reported a decline for five consecutive months, with sales of 49,204 units, down 24.2%.
The CPCA anticipates that the introduction of the vehicle retirement and replacement policy by the government, which will cover around 90% of the subsidy costs, will serve as a strong consumption boost. This will encourage localities to implement corresponding trade-in encouragement policies and timely release detailed implementation rules. With various places gradually rolling out their trade-in policies, it is expected that the initial effects of local subsidy policies will be positive, which will also contribute to a better sales performance during the "golden September and silver October" period.
