Global sales of China made vehicles rose 1% to 2.417m units in May 2024 from 2.382m a year earlier, according to the China Association of Automobile Manufacturers (CAAM).

The market last month was supported by a moderate increase in domestic sales while exports fell 4% to 481,000 units.

The government this year had stepped up efforts to stimulate domestic consumption including reducing down payment requirements on vehicle loans. In April the commerce ministry began offering a one off subsidy of CNY10,000 (US$1,381) until the end of 2024 to buyers trading in their old vehicles for qualifying new models.

GDP was estimated to have grown 5.3% year on year in the first quarter of 2024, driven by strong overall exports and a pick up in retail sales and service sector activity.

Global vehicle sales in the first five months of the year rose 8% to 11.496m units from 10.617m a year ago, with domestic sales rising 4% to 9.2m units while exports surged 31% to 2.3m.

Global sales of new energy vehicles (NEVs), mainly battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), rose 33% to 955,000 units in May and 32% to 3.95m year to date (YTD) including 522,000 exports. Global BEV sales rose 11% to 2.39m in this period while PHEV sales surged 97% to 1.56m.

Overall vehicle production rose 6.5% year on year to 11.4m YTD.

The decision by the European Union this month to impose higher import duties on Chinese BEVs inevitably will hold back vehicle output and exports in the second half of the year.

Manufacturers

SAIC Motor global sales fell 8% to 1,526,409 vehicles YTD, including a 7% decline in overseas sales to 406,645 units. Overall NEV sales increased 28% to 367,605 units.

SAIC-GM-Wuling deliveries increased 13% to 463,009 YTD and SAIC Volkswagen volume was up 6% at 430,085 units while SAIC-GM reported a 44% drop to 199,558 units.

BYD global sales increased by 28% to 1,271,325 units YTD with passenger BEV sales rising 19% to 580,974 units and PHEV volume surging 35% to 685,960 units while commercial vehicle sales dropped 28% to 4,391 units.

Geely Auto YTD global sales, including affiliated overseas brands, increased by 28% to 1,230,162 units and Great Wall Motor sales were 11% higher at 461,589 units while GAC Group reported a 25% decline to 699,529 units.

Tesla shipments from its Shanghai plant fell 7% to 355,616 units YTD with retail sales in China down just slightly to 219,056 units.