In November, monthly production and sales of Passenger Vehicles surpassed 3 million units for the first time. Institutions pointed out that the traditional peak season at the end of the year, combined with the "trade-in for new" policy, has increased the retail momentum in the Passenger Vehicle market.
In the A-share early trading, the Autos sector showed a strong upward trend, with Anhui Ankai Automobile hitting the ceiling price, followed by rises from Xiamen King Long Motor Group, Yutong Bus Co.,Ltd., Zotye Automobile, SAIC Motor Corporation, and Zhongtong Bus Holding.
According to data from the China Association of Automobile Manufacturers, in November, automobile production and sales reached 3.437 million vehicles and 3.316 million vehicles respectively, representing year-on-year increases of 11.1% and 11.7%. In the first 11 months of this year, automobile production and sales totaled 27.903 million vehicles and 27.94 million vehicles, with year-on-year growth of 2.9% and 3.7% respectively.
The monthly production and sales of Passenger Vehicles have for the first time surpassed 3 million units. In November, the production and sales of Passenger Vehicles reached 3.109 million units and 3.001 million units respectively, reflecting month-on-month increases of 14.9% and 9%, and year-on-year increases of 14.9% and 15.2%.
Donghai Securities pointed out that the traditional peak season at year-end combined with the "old-for-new" policy will increase demand, leading to continued high levels of activity in the retail end of the Passenger Vehicle market.
In April of this year, the Ministry of Commerce and seven other departments issued the "Implementation Rules for the Old-for-New Subsidy for Autos," clearly stating that applicable scrapped and newly purchased Electric Vehicles/RBOB Gasoline vehicles will receive subsidies of 10,000 yuan and 7,000 yuan respectively. According to data from the Ministry of Commerce, as of December 13, applications for subsidies for scrapped updates and replacement updates have reached 2.51 million vehicles and 2.72 million vehicles, respectively, exceeding a total of 5.2 million vehicles.
"The enthusiasm in the auto market continues, and the effects of the old-for-new policy are still evident, further releasing car purchase demand," said Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers on December 12. In November, both production and sales of automobiles continued to show double growth month-on-month and year-on-year, and the monthly production and sales of Passenger Vehicles and Electric Vehicles reached new historical highs.
Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Joint Conference, stated that the effects of the scrapping and replacement policies are continuously being released, while various car manufacturers leverage favorable factors such as Singles' Day Sales to further enhance the heat of the car market in November.
In addition, the penetration rate of Electric Vehicles remains high, and the growth of self-owned brand plug-in hybrid models is rapid. In November, the retail sales of Electric Vehicles reached 1.268 million units, a year-on-year increase of 51%, a month-on-month increase of 6%, with a retail penetration rate of 52.3%, up by 12 percentage points year-on-year; by power type, the wholesale sales of pure electric, plug-in, and range-extended vehicles in November were 0.832 million units, 0.475 million units, and 0.13 million units respectively, with year-on-year increases of 28%, 113%, and 52%. The proportion of plug-in hybrid models reached 33%, an increase of 10 percentage points year-on-year.
Chen Shihua believes that the growth of Electric Vehicles is mainly due to the pull of plug-in hybrid models. In addition, Cui Dongshu pointed out that
The explosive growth of Electric Vehicles reflects the market's positive feedback on the policies for scrapping and updating and trade-in.
