Global sales of Chinese made vehicles declined 5% to 2.262m units in July 2024 from 2.387m a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM).
Sales last month were driven by a 20% increase in exports to 469,000 units while domestic sales fell 10% to 1.793m.
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Economic growth slowed to 4.7% year on year in the second quarter from 5.3% in the first quarter with domestic consumption continuing to be affected by the ongoing property crisis with demand for large items particularly weak.
Exports were also starting to be held back by rising frictions with key trading partners such as the US and the EU.
Sluggish consumer demand in the last several months prompted the Chinese government to introduce additional stimulus measures at the end of July, including doubling the one-off CNY10,000 (US$1,390) subsidy introduced in April to CNY20,000 for buyers trading in their old internal combustion engine (ICE) vehicles for qualifying new battery electric vehicles (BEVs). The government had previously also taken measures to reduce down payment requirements on vehicle loans. Exports of used cars were expected to surge this year as a result of these stimulus measures.
Global vehicle sales in the first seven months of the year were still 4% higher at 16.31m units from 15.626m in the same period of last year with domestic sales rising by just 4% to 11.26m while exports surged 30% to 2.79m.
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By GlobalDataGlobal sales of new energy vehicles (NEVs) rose 27% to 991,000 units in July and by 32% to 5,990,000 units year to date (YTD) including a 12% increase in exports to 711,000 units. Global BEV sales rose by just 9% to 3,554,000 units YTD while PHEV sales surged 93% to 2,436,000 units.
Domestic NEV sales rose 36% to 5.279m YTD.
Overall China vehicle production rose 3% year on year to 16.179m units YTD.
The decision by the European Union last month to impose higher import duty on Chinese BEVs was beginning to affect output and exports.
Manufacturer performances
SAIC Motor global sales plunged 37% to 251,484 units in July 2024 with sales sharply lower across the group. Total sales were down 16% at 2,078,438 units YTD, despite a 15% increase in NEV sales to 532,133 units, while overseas sales fell 10% to 569,634 units. SAIC-GM-Wuling deliveries increased 2% to 646,009 units while SAIC Volkswagen was down 2% at 593,091 units and SAIC-GM reported a 55% drop to 240,579 units.
BYD global sales increased by 29% to 1,955,366 units YTD with passenger BEV sales rising by 15% to 856,153 units and PHEV volume surging 44% to 1,091,791 units while commercial vehicle sales dropped 13% to 7,422 units. Overseas sales jumped 152% to 233,418 units.
Geely group global YTS sales increased 23% to 1,739,467 units and Great Wall Motor sales were 4% higher at 650,954 units, including a 59% increase in overseas sales to 239,685 units, while GAC Group reported a 26% decline to 1,004,234 units.
Tesla shipments from its Shanghai plant fell 7% to 500,740 units YTD with the brand’s retail sales in China slightly lower at 324,317 units.
