Yesterday, many auto companies released their sales data for December 2024, with some brands reaching new sales highs. Although these numbers are impressive, they did not have a positive impact on the market performance of Autos stocks.

As of the time of writing,$GEELY AUTO (00175.HK)$Fell nearly 4%.$BAIC MOTOR (01958.HK)$、$BYD COMPANY (01211.HK)$、$GAC GROUP (02238.HK)$、$LEAPMOTOR (09863.HK)$、 $GAC GROUP (02238.HK)$ All fell by nearly 3%, $XPENG-W (09868.HK)$ A drop of nearly 2%.

Specifically, in December 2024, $LI AUTO-W (02015.HK)$ a total of 58,513 new cars delivered, a year-on-year increase of 16.2%; a total of 500,508 cars delivered in 2024.

In December 2024, $XPENG-W (09868.HK)$ a total of 36,695 new cars delivered, a year-on-year increase of 82% and a month-on-month increase of 19%.

In December 2024, $NIO-SW (09866.HK)$ delivered 31,138 new vehicles, achieving a single-month delivery peak of over 0.03 million vehicles, a month-on-month growth of 51.3% and a year-on-year growth of 72.9%.

In December 2024, $LEAPMOTOR (09863.HK)$ Delivered 42,517 units, a year-on-year increase of 128%, breaking the 0.04 million units delivery mark for two consecutive months, and achieving a historical monthly delivery record for seven consecutive months.

In addition to new forces, $BYD COMPANY (01211.HK)$ reported December sales, with new energy vehicle sales of 0.5148 million units and a cumulative new energy vehicle sales of 4.2721 million units from January to December, an increase of 41.26% year-on-year.

What is the outlook for the automotive market in 2025?

Cui Dongshu, the secretary-general of the Passenger Vehicle Market Information Joint Conference of the China Automobile Dealers Association, analyzed that the Chinese automotive market experienced U-shaped growth in 2024, especially in the second half of the year, thanks to strong subsidy policies for trade-ins and scrapping updates. Retail sales in the market are expected to reach 22.94 million units, a year-on-year increase of 5.7%. These policies significantly boosted sales, and if similar subsidy levels continue in 2025, the demand for subsidy funds for scrapping updates and trade-ins may exceed 200 billion yuan, setting a new historical high.

Based on the continuation of the 2024 policies, it is expected that the retail volume of the auto market in China will reach 23.4 million units in 2025, with a year-on-year growth of 2%. Among these, the retail volume of New energy Fund Passenger Vehicles is expected to be 13.3 million units, a year-on-year increase of 21%, with a market penetration rate of 57%. However, the global market environment in 2025 is expected to be quite complicated, with significant slowdowns in growth anticipated for the EU and Russian markets, potentially causing the growth rate of the global Passenger Vehicle market to drop to around 10%.

BOC International points out that with the recovery of market demand in 2025, the continued launch of new models, and the application of new technologies such as Asia Vets, connectivity, and fast charging, these factors, combined with policies supporting trade-ins, are expected to drive continuous growth in sales, with the sales of new energy vehicles in China likely to reach new heights.

Editor/rice