Global sales of Chinese-made vehicles declined by 2% to 2.809 million units in September 2024 from 2.858 million units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM).

Exports fell by 27% to 325,000 units last month, based on analysis of CAAM data, with shipments affected by weakening demand in key overseas markets as well as by increasing trade friction with North America and Europe. This was offset in part by a 3% increase in domestic sales to 2.484 million units, with the market beginning to respond to recent stimulus measures as the government reacted to a slowdown in GDP growth in the second quarter to 4.7%, from 5.3% in the first quarter, with growth slipping below its 5% full-year target.

At the end of July the government doubled the one-off subsidy introduced in April to CNY20,000 (US$2,800) for buyers trading in their old internal combustion engine (ICE) vehicles for qualifying new battery electric vehicles (BEVs). Earlier this year the government also instructed local banks to reduce downpayment requirements on vehicle loans while also cutting interest rates. Last week the Ministry of Finance unveiled a new stimulus package aimed at supporting the struggling property sector, strengthening bank lending and driving up consumer spending.

In the first nine months of 2024 China’s global vehicle sales increased by just over 2% to 21.571 million units from 21.069 million in the same period of last year, with light passenger vehicle sales rising by 3% to 18.679 million units while commercial vehicle sales fell by 2% to 2.892 million units. Overall volumes were supported by a 27% increase in exports to 4.312 million units, including a 12% rise in new energy vehicles (NEV) shipments - comprising mainly BEVs and plug-in hybrids electric vehicles (PHEVs), to 968,000 units. Domestic sales, on the other hand, fell by 5% to 17.259 million units from 18.183 million, including 7.392 million NEVs.

Manufacturer performances

SAIC Motor’s global sales plunged by 35% to 313,260 units in September and by 22% to 2,649,333 units year-to-date (YTD), with sales lower across the group despite a 15% increase in NEV sales to 748,027 units. Overseas sales were down by 12% at 739,207 units. SAIC-GM-Wuling’s deliveries declined by over 5% to 840,009 units, while SAIC Volkswagen’s dropped by 7% to 772,091 units and SAIC-GM reported a 61% plunge to 278,485 units.

BYD’s global sales increased by 32% to 2,747,875 units YTD, including a 105% jump in overseas sales to 297,881 units. Passenger BEV sales rose by 12% to 1,158,105 units, while PHEV volumes surged by 53% to 1,566,822 units and commercial vehicle sales rose by 22% to 11,474 units.

Geely group’s nine-month sales across all brands globally increased by 21% to 2,319,664 units, while Great Wall Motor’s sales were slightly lower at 853,813 units – underpinned by a 53% surge in overseas sales to 324,244 units and GAC Group reported a26% sales decline to 1,335,050 units.

Tesla’s overall shipments from its Shanghai plant fell by 3% to 675,758 units YTD, with the brand’s retail sales in China rising by 6% to 460,200 units.