According to the Zhitongcaijing APP, Cui Dongshu, the secretary-general of the China Passenger Car Association, stated that the domestic retail penetration rate of new energy vehicles increased by 13 percentage points year-on-year in the second quarter, and the retail penetration rate of new energy vehicles in June reached 49%. With the price reductions and promotions in the market from February to April, consumers have gradually released their buying enthusiasm after a period of observation. The wholesale and retail performance of the passenger vehicle market in June 2024 was better than expected. In June 2024, SUV retail sales increased by 0%, which was better than the industry average by 7 points, while the retail sales of sedans decreased by 13% year-on-year, weaker than the industry average by 6 points. The retail sales of MPVs decreased by 11%, much weaker than the industry by 4 points. The poor performance of A0-level new energy sedans is the main reason why sedans performed worse than SUVs. In terms of structure, low-end consumption was sluggish, while high-end consumption was strong. The B-level sedan market performed well, while the high-end of SUVs was strong, and the B and C-level SUVs performed better than last year.

Cui Dongshu pointed out that the early start of the price war in the auto market this year, coupled with large price cuts of nearly 20% for some popular models, and the large time span from after the Spring Festival in February to the end of April, close to the number of models on sale with price cuts for the entire year ahead of last year, have temporarily caused extremely cautious views on prices among consumers. Coupled with weak consumer expectations, this has temporarily suppressed the start of the spring car market. With the implementation details of the policy of trading in old cars for new ones, the accumulated consumer purchasing power has been released in June, which drove the trend of new energy vehicles in June, better than what the passenger vehicle manufacturers' prediction teams expected. In June, the quality of the continued incremental growth of the new energy vehicle market was higher due to the exclusion of entry-level models such as micro electric vehicles from the new energy vehicle purchase tax incentive policy since June 1st.

The characteristics of the passenger car market in June: 1. The continued negative growth of retail sales from April to June is mainly due to the unexpectedly sluggish 25% year-on-year decline in sales of gasoline vehicles, and the growth rate of new energy vehicles is 55% lower than that of gasoline vehicles in June; 2. The domestic retail penetration rate of new energy vehicles continued to increase by 13 percentage points year-on-year in the second quarter, and the retail penetration rate of new energy vehicles in June reached 49%; 3. Gasoline vehicles lack new product support, and the promotion intensity of gasoline vehicles in June increased significantly month-on-month, while the price promotion of new energy vehicles fell back due to new products and price reductions; 4. The characteristics of destocking the industry in June are becoming increasingly obvious, and the structural adjustment pressure is spreading from the manufacturers to the distribution channels faster, and the dealers' sustained operating confidence is insufficient; 5. In June, gasoline vehicles in the passenger car export market grew strongly by 31% year-on-year, new energy vehicle exports increased by 12%, and the overseas market performance of gasoline vehicles was much stronger than that of the domestic market.

1. Trends in the economy passenger car market.

1. A00-level sedan market performance.

In June 2024, wholesale of A00-level sedans was 0.093 million units, accounting for a wholesale share of 10.14%, with a year-on-year increase of 35%, and a month-on-month increase of 20%. In June 2024, retail sales increased by 23% year-on-year, but fell by 11% month-on-month. From January to June 2024, the wholesale sales volume was 0.4445 million units, and the cumulative increase in factory wholesale sales was 57%. From January to June 2024, the domestic retail sales volume was 0.4377 million units, and the cumulative increase in retail sales was 35%.

The trend of electric cars replacing micro sedans is evident. In the past few years, sales of gasoline micro sedans have declined significantly, and sales of existing high-quality micro sedans have declined even more severely. The micro car market has become the main market for electric vehicles in recent times.

The A00-level market has returned to the competitive pattern of 20 years ago, when Chery, Geely, Chang'an, BYD and other companies had good A00-level products. Recently, BYD, Geely, Chang'an, Chery and other diversified A00-level main models and new products have shown outstanding performance, and the gradual increase in micro electric vehicles indicates potential incremental growth.

2. Trends in the main models of A0-level sedans.

In June 2024, the wholesale of A0-level sedans was 0.0726 million units, accounting for a wholesale share of 7.91%, a year-on-year decrease of 31%, and a month-on-month increase of 5%. In June 2024, retail sales fell by 40% year-on-year and 11% month-on-month. From January to June 2024, the wholesale sales volume was 0.4442 million units, and the cumulative decrease in factory wholesale sales was 19%. From January to June 2024, the domestic retail sales volume was 0.2638 million units, and the cumulative decrease in retail sales was 32%.

The characteristics of the replacement of gasoline vehicles by independent electric vehicles are evident, and the competitive structure has shifted from being dominated by joint ventures to being dominated by independents. Japanese brands such as Toyota and Honda maintained a strong position in the early stages, but the trend of the fuel-efficient entry-level vehicles produced by independent brands has been relatively difficult in recent years.

3. Trends in A0-level SUV sales.

In June 2024, the wholesale of A0-level SUVs was 0.1668 million units, accounting for a wholesale share of 14.31%, a year-on-year decrease of 15%, and a month-on-month decrease of 3%. In June 2024, retail sales fell by 11% year-on-year, but increased by 2% month-on-month. From January to June 2024, the wholesale sales volume was 0.9393 million units, and the cumulative decrease in factory wholesale sales was 13%. From January to June 2024, the domestic retail sales volume was 0.5686 million units, and the cumulative decrease in retail sales was 16%.

2. Trends in the A-level passenger car market.

Trends in the compact sedan block orders market.

In June 2024, the wholesale of A-class passenger vehicles was 0.3965 million units, accounting for 43.21% of the wholesale share. Compared to the same period last year, the wholesale volume decreased by 15% and increased by 13% compared to last month. The retail volume decreased by 22% compared to the same period last year, and remained unchanged compared to last month. From January to June 2024, the wholesale volume was 2.1401 million units, with a cumulative decrease of 10%. The domestic retail volume from January to June 2024 was 2.0046 million units, with a cumulative decrease of 10%.

Trends in the compact SUV block orders market.

In June 2024, the wholesale of A-class SUV was 0.5967 million units, accounting for 51.2% of the wholesale share. Compared to the same period last year, the wholesale volume decreased by 5% and increased by 1% compared to last month. The retail volume decreased by 12% compared to the same period last year and increased by 2% compared to last month. From January to June 2024, the wholesale volume was 3.3935 million units, with an increase of 14% in cumulative factory wholesale sales. The domestic retail volume from January to June 2024 was 2.5501 million units, with an increase of 7% cumulative sales.

Trends in the B-class passenger vehicle market.

In June 2024, the wholesale of B-class passenger vehicles was 0.2883 million units, accounting for 31.42% of the wholesale share. Compared to the same period last year, the wholesale volume increased by 5% and increased by 6% compared to last month. The retail volume decreased by 3% compared to the same period last year and increased by 6% compared to last month. From January to June 2024, the wholesale volume was 1.5926 million units, with an increase of 14% in cumulative factory wholesale sales. The domestic retail volume from January to June 2024 was 1.4197 million units, with an increase of 10% cumulative sales.

Trends in the B-class SUV market.

In June 2024, the wholesale of B-class SUVs was 0.3633 million units, accounting for 31.17% of the wholesale share. Compared to the same period last year, the wholesale volume increased by 25% and increased by 16% compared to last month. The retail volume increased by 22% compared to the same period last year and increased by 13% compared to last month. From January to June 2024, the wholesale volume was 1.7951 million units, with an increase of 31% in cumulative factory wholesale sales. The domestic retail volume from January to June 2024 was 1.5876 million units, with an increase of 29% cumulative sales.

Trends in the B-class and above MPV market.

In June 2024, the wholesale of B-class MPVs was 0.0516 million units, accounting for 60.01% of the wholesale share. Compared to the same period last year, the wholesale volume decreased by 2% and increased by 2% compared to last month. The retail volume decreased by 3% compared to the same period last year and remained unchanged compared to last month. From January to June 2024, the wholesale volume was 0.2713 million units, with no cumulative change in factory wholesale sales. The domestic retail volume from January to June 2024 was 0.2648 million units, with a cumulative decrease of 1% sales.

In June 2024, B-class MPV has a wholesale volume of 51,600 units, accounting for 60.01% of the wholesale market share, a 2% year-on-year decline. Wholesale sales increased by 2% compared to last month. Year-on-year, retail sales in June 2024 decreased by 3% compared to the same period last year, and increased by 0% compared to last month. From January to June 2024, the wholesale volume was 0.2713 million units, with a cumulative increase in manufacturer's wholesale sales of 0%; from January to June 2024, domestic retail sales volume was 0.2648 million units, with a cumulative decrease in retail sales of 1%.