The Zhitong Finance App learned that on May 15, the latest data from the Passenger Transport Federation showed that on May 1-12, the NEV market retailed 241,000 vehicles, up 31% from the same period last year, up 10% from the same period last month, and has sold 2.692 million units since this year, up 33% year on year; from May 1 to 12, passenger car manufacturers across the country wholesale 213,000 new energy vehicles, up 36% from the same period last year, down 5% from the same period last month.

According to the data, from May 1 to 12, the passenger car market retailed 559,000 units, down 9% from the same period last year, up 28% from the same period last month, with cumulative retail sales of 6.926 million units since this year, up 6% year on year; from May 1 to 12, passenger car manufacturers across the country sold 403,000 vehicles, down 11% from the same period last year, down 10% from the same period last month, and a total of 7.953 million units have been wholesale since this year.

Retail sales in the national passenger car market did not start well in May

The passenger car market sold 47,000 vehicles per day in the first week of May, down 9% from the same period last year, and up 28% from the same period last month.

On May 1-12, 559,000 vehicles were retailed in the passenger car market, down 9% from last year and up 28% from the same period last month. Since this year, a total of 6.926 million vehicles have been sold, an increase of 6% over the previous year.

Last year's “May 1st” holiday was from April 28 to May 3, with more orders placed at the end of April being sold in May; this year it is May 1-5, so there is a certain holiday difference, which is conducive to an increase in sales in April this year, but it is not conducive to the growth rate at the beginning of May.

As the low season of the summer market approaches, the car market has entered a period of stability. In April, China's manufacturing purchasing managers' index (PMI), non-manufacturing business activity index, and composite PMI output index were 50.4%, 51.2%, and 51.7% respectively. The three major indices continued to remain in the expansion range, which had an obvious effect on stabilizing the auto market.

The continued slump in conventional fuel vehicle consumption is an important factor inhibiting the overall recovery of the car market. Policies such as the current trade-in reasonably guarantee the replacement demand of fuel vehicle consumers. It is of great significance to the steady development of the car market, and is also conducive to the gradual stabilization of the car market in May.

Sales of passenger car manufacturers across the country picked up steadily in May

In the first week of May, the average wholesale volume was 34,000 units per day, down 11% from the same period last year, and 10% from the same period last month.

From May 1 to 12, passenger car manufacturers across the country wholesale 403,000 vehicles, down 11% from the same period last year, down 10% from the same period last month; since this year, 7.953 million vehicles have been sold, up 9% year on year.

There are 21 working days in May this year, which is the same as last year, but this year's 5 consecutive holidays have reduced the production and sales interval in May. As the summer off-season approaches, the car market has stabilized. Some fuel vehicle companies have stepped up their vacation efforts to achieve production cuts to stabilize prices and demand. Rational production cuts have had a stable effect on market development in the balance between supply and demand.

With the implementation of the national trade-in policy and the introduction of follow-up measures in various regions, and the gradual cooling of the price war for new products in the car market, the consumer enthusiasm of market watchers has been stimulated. The market should enter a relatively good stage, and it is expected that the fuel vehicle market will gradually recover its vitality.

The performance of the national pickup truck market was strong in April

In April 2024, the pickup truck market sold 44,000 vehicles, up 4% year on year, down 13% month on month, and is at a medium to high level in the past 5 years. Since the Pikar base was relatively normal in April last year, this year's growth performance was quite good. In January-April of this year, 173,000 pickup trucks were sold, achieving a year-on-year increase of 5.1%. The overall performance was good.

As pickup trucks enter the city and liberalize the right of way, the effect is far less effective than that of pickup trucks going to the countryside, it is still a false proposition. Pickup markets in the northwest, southwest, central regions, and northeast regions continue to strengthen. As the country's efforts to promote consumption increase, unreasonable measures restricting consumption are gradually lifted, and demand for pickup trucks in cities with purchase restrictions and travel restrictions is still sluggish. Due to insufficient production by international car companies and large contradictions between supply and demand, the relationship between China and European and American countries has remained good. Demand for Chinese automobiles in overseas markets has surged, driving China's pickup truck exports to continue to grow since 2022. Exports from January to April 2024 still showed the same relatively strong growth trend. Among them, Great Wall Motor, Changan Automobile, SAIC Chase, and JAC had excellent export performance.

In April of this year, 44,000 pickup trucks were produced, up 4.2% year on year, and pickup truck sales increased 4.4% year on year. In April, pickup truck exports accounted for 42% of sales, making it the strongest share of commercial vehicle exports. The performance of the domestic pickup truck market is relatively stable. In particular, the share of pickup truck sales in the county and rural markets increased relatively well compared to last year, effectively offsetting the contraction of pickup trucks in major cities.

High-end price segment structure in the national passenger car market

According to the Passenger Federation brand data, the sales structure trend in the price segment of the national passenger car market continues to rise. The share of sales of high-end models has increased significantly, and the share of sales of medium- and low-price models has decreased. This is driving consumption upgrading, and it is also driven by the consumption upgrade of purchasers.

Car market prices have continued to rise in recent years. 2018 was 134,000 yuan, 2020 was 153,000 yuan, this year was 177,000 yuan, and April was 180,000 yuan. The main reason is that the price of hybrids and extenders is higher, which is a structural driver. At the same time, the average sales price of original fuel vehicles also increased, and the high-end fuel vehicles led to a significant increase in prices.

Sales of high-end new energy models increased markedly. The 300-400,000 NEV increased 46%, the 400,000 and above 400,000 increased 164%, sales of medium- and low-priced models declined, making the fuel vehicle market difficult.

In 2024, the high-end characteristics of the automobile market consumption structure were further strengthened. In 2024, retail sales in the passenger car market were temporarily sluggish, and domestic fuel vehicle retail recovery performance was poor in April, inhibiting the growth of the automobile market and supporting growth with export contributions.

Judging from structural analysis, the entry-level market has shrunk, the consumer base is under strong pressure, the purchasing power of the middle and low end is insufficient, and the price war has clearly broken out. The upward trend in the price segment of traditional fuel vehicles is not a favorable factor in boosting consumption; it is necessary for ordinary consumers to be more likely to buy entry-level cars. In other words, low-end consumption is very important. Therefore, it improves the purchasing power of ordinary people, achieves a relative balance on the price side of the car market, boosts entry-level consumption, and enables first-time buyers to start spending.

China's automobile exports are the biggest highlight

China's automobile exports are the highlight of recent growth. From mainly exports of parts and components, then strengthening of vehicle exports, to the recent continuous performance of new energy vehicles, it shows the strong development strength and good results of the automobile industry.

The new three new energy passenger cars are the strongest. China's NEV exports increased by 18% by US$11.1 billion in the first quarter of 2024. Exports leveled off in February, but rose rapidly in March, reflecting the new impetus for exports from autonomous vehicle companies. China's lithium battery exports fell 17% to 13.2 billion US dollars in the first quarter of 2024, while the volume of lithium battery exports increased 6% in the first quarter of this year. The unit price of major exports fell sharply by 22%, leading to a decline in export value. China's solar cell exports of US$9 billion fell 31% in the first quarter, while in the first quarter of this year, the number of solar cell exports increased by 24.7% per unit and 29.5% by weight. The unit price of major exports fell sharply by nearly 46%, leading to a 31% drop in export value.

The system capabilities of the Chinese automobile industry have matured, and its strong competitiveness in the future will surely gradually change the world automobile landscape. China's new energy vehicles have performed well in the pure electric market in Europe and Southeast Asia. In the future, the mix of low prices will also change the competitive pattern of the automobile market in developing countries. In the future, China's automobile exports will strengthen base construction, achieve huge market breakthroughs in overseas distribution and leapfrog development of cities surrounded by independent brands in rural areas, and will surely become the strongest business card for China's foreign trade.