Production and marketing growth of automobile industry exceeded expectations

Positive effects appear and demand continues to be released-

Production and marketing growth of automobile industry exceeded expectations

According to the data of China Association of Automobile Manufacturers, in the first 10 months, China’s automobile production and sales reached 24.016 million and 23.967 million respectively, up by 8% and 9.1% respectively, and the automobile production and sales maintained steady growth. Experts believe that with the continuous emergence of the national steady growth policy effect, coupled with local car subsidies, promotional activities and other measures and the "tail-jumping" effect at the end of the year, the market demand of the automobile industry will continue to grow in the fourth quarter, which is expected to better achieve the annual target.

Create a new high in the same period in history.

Auto shows and promotions in many places in China are being carried out in the near future, new models are continuously released, and the number of passengers entering the store has increased significantly, further stimulating automobile consumption.

According to the data of China Automobile Association, the production and sales of automobiles reached 2.891 million and 2.853 million respectively in October, up by 11.2% and 13.8% respectively year-on-year. After September, the production and sales volume once again hit a new high in the same period of the month.

Chen Shihua, Deputy Secretary-General of China Association of Automobile Manufacturers, said that the automobile market is "golden September, silver and ten", and the automobile sales volume in October was basically the same as that in September, slightly lower than that in the previous month, achieving rapid growth year-on-year. In the first 10 months, the growth rate of automobile production and sales in China increased by 0.7 and 0.9 percentage points compared with the previous September.

This year, China’s automobile market has shown a gradual improvement trend. Cui Dongshu, Secretary-General of the Passenger Car Market Information Association, said that in the first two months, the automobile market was greatly affected by the Spring Festival and the withdrawal of subsidies. From March to May, it was driven by last year’s low base, and it surged year-on-year. From June to October, exports and domestic demand were strong, which promoted high growth. The recovery of commercial vehicles in China automobile market is strong, and the passenger car market continues to improve.

At present, manufacturers and dealers have entered the year-round target sprint stage, and the competition in the auto market has become increasingly fierce. Especially in the fourth quarter, some manufacturers have launched some impulse measures to gradually increase terminal promotion. With the increase of policy guidelines for the automobile industry at the national level, the automobile market is expected to achieve the annual target better.

Chen Shihua pointed out that the monthly law of automobile production and sales has a "tail-jumping" effect at the end of the year, and the base in the last two months of last year was low. From the recent research, this year’s "tail-jumping" will appear again. In the first ten months of this year, automobile sales increased by 9.1% year-on-year. In addition, automobile companies still have to be impulsive in the fourth quarter. It is estimated that the annual growth rate of production and sales will exceed the expectation of 3% at the beginning of the year.

Xu Haidong, deputy chief engineer of China Automobile Association, predicted that from the performance of the automobile market in the previous October, domestic automobile sales this year are expected to exceed 30 million, a record high.

The monthly production and sales of new energy is nearly one million vehicles.

Compared with the automobile market as a whole, the performance of new energy vehicles is more eye-catching.

In October, the production and sales of new energy vehicles were 989,000 and 956,000 respectively, up by 29.2% and 33.5% respectively, with a market share of 33.5%. In the first 10 months, the production and sales of new energy vehicles in China reached 7.352 million and 7.28 million respectively, up by 33.9% and 37.8% respectively, with a market share of 30.4%. The export of new energy vehicles was 995,000, a year-on-year increase of 99.1%.

"In October, the production and sales of new energy vehicles hit a record high, reaching a scale of nearly one million vehicles in a single month, and the market share exceeded 30% for six consecutive months." Chen Shihua said that the cumulative sales volume of new energy vehicles in China during the year has exceeded that of last year, and the market share has also exceeded 30% from 29.8% in September.

From the sales point of view, in the first 10 months, the sales volume of the top ten enterprise groups of new energy vehicles totaled 6.321 million, up 49.6% year-on-year, accounting for 86.8% of the total sales volume of new energy vehicles. Chen Shihua said that in the past few years, the market share of the top ten new energy vehicles was only 50% to 60%, and now it can be compared with fuel vehicles, which proves that the market concentration is constantly improving.

New energy vehicles have gradually become the main force in the auto market. The recently released 2023 Research Report on China Automobile Preservation Rate shows that the sales of new energy vehicles have increased substantially this year, and the market penetration rate has remained high, which has contributed more to the growth of domestic new car sales than fuel vehicles.

Rural market is the future increment of China automobile market. A few days ago, Minister of Commerce Wang Wentao said that it will continue to promote new energy vehicles to the countryside, and the whole chain will promote automobile consumption. According to industry insiders, with the further enrichment of vehicle supply, the improvement of intelligent+fast charging+long battery life experience and the reduction of cost, new energy vehicles will sink to a more competitive price range, which is expected to usher in a second increase in penetration.

Independent brands performed well.

In October, the independent brands of automobiles performed well and their market share further increased. Data show that in October, the sales volume of China brand passenger cars was 1.485 million, up by 25.1% year-on-year, and the market share reached 59.7%, up by 6.6 percentage points.

Chen Shihua said that last year, the market share of China brand passenger cars was 49.5%. Since the beginning of this year, this figure has remained above 50% and steadily increased, even approaching 60% in October.

In the field of new energy vehicles, the advantages of independent brands are more obvious. Except Tesla, the top ten manufacturers in the field of new energy sales are all independent brands. Cui Dongshu said that independent brands have achieved significant growth in the new energy market and export market, and the transformation and upgrading of traditional car companies have performed well, and the brand share of traditional car companies such as BYD, Chery, Changan and Geely has increased significantly.

With the increasing concentration of the domestic market, the domestic market tends to be relatively saturated, enterprises will look more overseas, and automobile exports will grow rapidly year-on-year.

The data shows that in October, China exported 488,000 cars, up 9.8% from the previous month and 44.2% from the same period last year. In the first 10 months, automobile exports reached 3.922 million, up 59.7% year-on-year. Among them, the export of traditional fuel vehicles was 2.927 million, a year-on-year increase of 49.6%; The export of new energy vehicles was 995,000, a year-on-year increase of 99.1%.

Chen Shihua pointed out that this year, domestic listed companies have taken the development of the international market as an important business strategy, not only by direct trade, but also by domestic car companies, including supply chain companies.

The research report released by Everbright Securities shows that the competition in the domestic automobile market is intensifying, and the market expansion demand of independent brands drives the domestic automobile exports to maintain a strong growth trend. Building factories and mergers and acquisitions are effective solutions to expand the scale of overseas production and marketing; Among them, the most localized development or the key factor of overseas layout. (Liu Wei)

Source: Economic Daily