AutoBeta(AutoBeta.net)07/11 Report--

In June, China's automobile market continued the strong growth trend in May and continued to achieve double-digit growth, achieving four consecutive months of month-on-month growth. At the same time, although the sales volume of the new energy market increases with the recovery environment, it is still in negative growth performance, which is far lower than that of the domestic passenger car market.

According to the latest production and sales data released by the China Automobile Association, domestic car production and sales reached 2.325 million and 2.3 million respectively in June, up 6.3 per cent and 4.8 per cent from the previous month, and 22.5 per cent and 11.6 per cent year-on-year. Throughout the previous June, although the market production and sales volume was in negative growth, production and sales volume were 10.112 million and 10.257 million respectively, down 16.8% and 16.9% from the same period last year. But this is the domestic passenger car market as a whole has achieved slow restorative growth for four months in a row.

By contrast, the situation of new energy vehicles this year is obviously more complicated, with sales of 104000 vehicles in June, down 33.1% from a year earlier, although sales have maintained four months of month-on-month growth, and the month-on-month growth rate has been expanding, according to the China Automobile Association. However, in the previous June, the decline was-57.9%,-69.5%,-48.8%,-30%,-25.4%,-38.8%, showing an overall trend of "N". Cumulative sales from January to June were 393000, down 37.4% from the same period last year.

From the perspective of specific models in the first half of the year, plug-in hybrid models are better than pure electric models, although the overall volume is less than one-third of pure electric models, but their performance is better than pure electric models. There was a marked improvement in June, with a wholesale volume of 17700, a year-on-year decline of only 11%, far lower than the overall decline of 34.9% for new energy passenger vehicles and 40% for pure electric vehicles. This year, except for January, plug-in hybrid sales have been higher than or close to the overall decline in new energy passenger vehicles.

The slightly poor market performance in the first half of the year is also due to the drag of traditional new energy car companies. The performance of BYD and BAIC Langu, the two leading traditional new energy vehicle companies in China, have both plummeted. Among them, BYD sold 33725 vehicles in June, down 13% from the same period last year, of which 14165 were new energy vehicles, down 46.7% from the same period last year. Sales of fuel vehicles were 19560, up 60.80% from the same period last year.

In the first half of 2020, BYD sold only 60700 new energy vehicles, down 58.34 per cent from the same period last year, while BYD sold 98000 fuel vehicles, up 18.85 per cent from the same period last year. Today, BYD's new energy vehicles, as the main force, have been dragged down.

Compared with BYD, BAIC Langu, which remained at the top of the new energy market in 2019, has fallen even more this year, with sales falling by 80% either in a single month or for the whole year, meaning only 20% of last year's sales. Car sales in June were 3008, down 88.46 per cent from a year earlier, and 14700 in the first half, down 77.44 per cent from a year earlier, according to BAIC New Energy, a subsidiary.

Compared with traditional car companies, the performance of the new power of car building has certain advantages, and the overall sales have been rising since 2020. According to Shen Hui, founder of Weima, the total sales of new power car companies have increased from 6% last year to 15%. This shows that the sales of traditional car companies are turning to new power car companies, although the proportion is still not large, but it also shows that the personal new energy market is improving.

According to data, from January to June 2020, Chinese car-building new power enterprises completed sales of about 40,000 units. Among them, the top five companies, including NIO, ideal, Weima, Xiaopeng and Hezhong enterprises, account for 90% of the sales of vehicles. This is also because under the environment that the new energy vehicle market is not as expected, many new power car companies have been facing collapse and have fallen down, and the differentiation of new forces is becoming more and more obvious.

It is worth noting that with the domestic Tesla to achieve domestic, its domestic Model 3 is also constantly grabbing market share. According to the latest data from the Federation of passengers, Tesla Model 3 once again dominates the list of domestic new energy single models with the highest sales of 14954. The cumulative sales in the first half of the year reached 45754, equivalent to dominating 12% of the market share, close to the overall share of the new forces.

On the whole, after several months of market recovery, China's economic situation is gradually changing for the better. With the continuous promotion of automobile consumption policies around the country, the market performance is generally better than expected. With regard to the performance of the new energy market, Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, said: "New energy is likely to pick up steadily in the second half of the year. Due to the gradual recovery of private consumption power, a relatively stable small growth is expected in the third and fourth quarters. This will benefit from the leadership of leading models such as Tesla.

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