According to the data released by the Passenger Vehicle Branch of the China Association of Automobile Manufacturers, from June 1st to 10th, the retail sales of electric passenger vehicles were 180,000 units, a year-on-year increase of 27%, down 11% from the same period last month. The cumulative retail sales this year reached 3.436 million units, a year-on-year increase of 34%. From June 1st to 10th, the country's passenger car manufacturers wholesaled 197,000 new energy vehicles, a year-on-year increase of 56%, and a month-on-month increase of 10%. The cumulative wholesale volume this year reached 3.835 million units, a year-on-year increase of 32%.

From June 1st to 10th, the retail sales of passenger vehicles were 360,000 units, a year-on-year decrease of 8%, down 23% from the same period last month. The cumulative retail sales this year reached 8.433 million units, a year-on-year increase of 5%. From June 1st to 10th, the country's passenger car manufacturers wholesaled 352,000 units, a year-on-year decrease of 13%, and a month-on-month increase of 4%. The cumulative wholesale volume this year reached 9.936 million units, a year-on-year increase of 8%.

The national retail market for passenger vehicles will start steadily in June 2024.

In the first week of June, the daily retail sales of passenger vehicles were 36,000 units, a year-on-year decrease of 8%, and a month-on-month decrease of 23%.

From June 1st to 10th, the retail sales of passenger vehicles were 360,000 units, a year-on-year decrease of 8%, down 23% from the same period last month. The cumulative retail sales this year reached 8.433 million units, a year-on-year increase of 5%.

There are 19 working days in June this year, which is two days less compared to last year's 21 working days, which is not conducive to the sales sprint in the first half of June. The discount season for new cars in the spring has ended, and the issuance of electric vehicle license plates in Beijing at the end of May has driven the popularity of exchanging old cars for new ones, jointly promoting the continuation of car purchase enthusiasm in June.

The passenger vehicle market has entered the final stage of the first half of the year, and local governments and automakers are very eager to boost sales performance. With the improvement of the manufacturing enterprise system's capacity for delivering new vehicle models, fast-releasing production capacity takes the lead. Therefore, June is still a month with better sales trends.

In June 2024, the national passenger car manufacturers' sales will start steadily.

In the first week of June, the daily wholesale volume of passenger car manufacturers in the country was 35,000 units, a year-on-year decrease of 13% in June of the previous year, and an increase of 4% from the previous month.

From June 1st to 10th, the country's passenger car manufacturers wholesaled 352,000 units, a year-on-year decrease of 13%, and a month-on-month increase of 4%. The cumulative wholesale volume this year reached 9.936 million units, a year-on-year increase of 8%.

In 2024, the number of people taking the college entrance examination reached 13.42 million, a historical high, which will also bring about a hot demand for driving and tourism after the college entrance examination, which is conducive to the sustained strong performance of the car market in June. With the improvement of the experience of the third space of intelligent new energy vehicles and the stable expectation of comprehensive use cost, this summer's self-driving tour will once again increase. Personalized and low-cost travel methods such as private car self-driving have become more popular.

The demand for conventional fuel cars and new energy vehicles is different and cannot be simply replaced altogether. The continued weakness in consumption of conventional fuel vehicles is an important factor in inhibiting the overall recovery of the automotive market. This policy, such as trading in old cars for new ones, reasonably guarantees the demand for the purchase of conventional fuel vehicles, which is of great significance for the stable development of the automotive market. The state's overall consideration and precise grasp of 'promoting consumption and boosting domestic demand' are becoming increasingly clear, and the consumption potential of 'eliminating old and updating new' will gradually be released, which is beneficial to the gradual recovery of the automotive market in the next few months.

From the monitoring data of passenger vehicle manufacturers, in May 2024, the retail sales of China's independent brand cars in overseas local markets increased by 57% year-on-year for the same period last year. Among them, the overseas retail sales of independent cars in May increased by 57% year-on-year, continuing to maintain a strong growth trend. It can be judged that China's passenger car exports in June will still maintain good growth momentum, which will drive the overall domestic and foreign sales volume of passenger cars to continue to grow month-on-month.

May 2024 Automobile Import and Export Express

On June 7, the General Administration of Customs released data showing that in May, the total export volume of automobiles, including chassis, reached 569,000 units, a year-on-year increase of 30%. The export amount that month reached 10.5 billion US dollars, a year-on-year increase of 17%, achieving strong growth. From January to May this year, the overall export volume of automobiles reached 2.45 million units, a year-on-year increase of 27%. The export amount of automobiles reached 46.4 billion US dollars, a year-on-year increase of 20%. China's auto exports continue to maintain high growth, and the new momentum of exporting complete vehicles continues to maintain strong growth. The continued rapid growth of automobile exports shows that China's export diversification is developing and its export resilience is strong. Chinese automobile manufacturers have improved the quality and competitiveness of their products in recent years, focusing on technological innovation and continually improving product design, technology, and quality control, enabling them to compete with other automobile manufacturers on the international market.

The reasons for China's good performance in automotive exports in May include high-quality competitiveness of the automotive industry, restructuring of the global supply chain, and increased demand in the international automotive market. These factors together promote the growth of China's automotive car exports. In recent years, China's vehicle exports have been strong, while exports of automotive parts have been weak. Vehicle exports have surpassed 100 billion US dollars and reached over 1 trillion US dollars, while automotive parts have continued to hover. In the future, China's automotive parts industry needs to accelerate its cooperation with the export of complete vehicles to achieve sustainable development in the global automotive competition.

In April 2024, the number of second-hand car transactions reached 1.68 million, an increase of 15%, with a transaction volume of 111.1 billion yuan, an increase of 23%. From January to April, the transaction volume reached 6.28 million, an increase of 9%, with a transaction amount of 425.1 billion yuan, an increase of 18%. With the continuous improvement of the grade of second-hand car transactions, along with the increase in the use of new energy vehicles in China, China's second-hand car market has great potential for development. Due to the published national policy, second-hand car business and car scrapping renewal will thrive and the potential for China's second-hand car market development is enormous.

With the promotion of China's policy of replacing old vehicles with new ones, the development of China's second-hand car market has tremendous potential. In April 2024, there were 1.68 million second-hand car transactions, an increase of 15%, with a transaction volume of 111.1 billion yuan, an increase of 23%. From January to April, there were 6.28 million transactions, an increase of 9%, with a transaction amount of 425.1 billion yuan, an increase of 18%. Although the proportion of second-hand car transactions in China is relatively low compared to that of international developed countries and regions, the development potential of China's second-hand car market is enormous.

At the call of the China Automobile Circulation Association, the circulation of second-hand cars in China has improved. Local traffic management departments are facilitating business activities, promoting the circulation of second-hand cars. However, compared with international advanced developed countries and regions, the proportion of second-hand car transactions in China is relatively low. Since China started relatively late in the automotive market, domestic consumers started to consume second-hand cars later. At present, China's second-hand car market is at a stage of rapid development and has enormous potential, mainly due to the development of new energy vehicles that bring low cost benefits to Chinese consumers.

Under the drastic change of a century, automotive companies need to accelerate, but with moderation.

At present, the automotive industry is undergoing a transformation of old and new productive forces. Traditional gasoline-powered cars have high fuel consumption and poor user experience, and they are inevitably being gradually replaced by pure electric and plug-in cars. The current competition is not a simple low-level one, but a necessary stage in a major industry revolution. China's penetration rate of new energy vehicles is extremely high, with a penetration rate of around 50%. The society needs to establish a reasonable and competitive environment for oil-to-electric vehicles. Enterprises need to adapt to the changing industry environment, but they also need to protect their employees' interests moderately.

We have always advocated equality between oil-fueled and electric cars, which is necessary to gradually restore fair competition to the industry. In recent years, with the sharp increase in the penetration rate of new energy vehicles, calls have gradually risen internally and externally to cancel the "policy privileges" for such vehicles. Chinese electricity prices are extremely low, while half of the price of each liter of gasoline in China is tax. This causes a significant difference in tax burden between gasoline and electric cars. Especially due to the exemption from vehicle purchase tax based on "green tags", priority license plate eligibility, and exemption from traffic restrictions, etc. Second-hand cars in China have high penetration rates, and society needs to consider establishing a reasonable and fair competitive environment for oil-to-electric cars.

The EU's imposition of tariffs on Chinese electric cars is self-defeating.

Starting next month, the European Union will levy tariffs of up to 21% on electric cars imported from China, which is a typical act of protectionism that violates the principles of market economy and international trade rules and undermines the stability of Sino-European economic and trade cooperation and the global automotive industry supply chain.

The development of China's new energy vehicles relies on the country's massive consumer market and strong manufacturing industry chain. The damage caused by the European Union's imposition of tariffs is significant as European consumers cannot enjoy the high price-performance ratio of China's high-end electric vehicles. At the same time, the move weakens the competitive environment for European car companies and temporarily stabilizes their development. However, we determine that due to the shortage of global automotive supply, the competition in the European automotive market will become more intense even if China's electric vehicles are suppressed. The good times for European and American car companies to lie down and make money during the epidemic period are gone.

At present, Chinese automobile companies are controlling the export scale and price in a self-regulated manner, and the protectionist circle established by the European Union's tariffs may have a certain short-term effect. However, in the long run, flowers in the greenhouse must accept the influence of the global environment. Therefore, the protection of the European new energy vehicle market is not conducive to improving competitiveness, and markets outside the protectionist area are expected to be rapidly lost. The effects of Chinese automobile companies moving towards the global market will gradually emerge.