AutoBeta(AutoBeta.net)07/09 Report--

On July 8, the HKIFA released its latest monthly market report. Data show that retail sales in the domestic passenger car market were 1.767 million in June 2024, down 6.7 per cent from a year earlier and an increase of 3.2 per cent month-on-month. Of these, retail sales of traditional fuel vehicles were 905000, down 27% from the same period last year, while retail sales of new energy vehicles were 856000, up 29% from the same period last year. According to this calculation, the domestic retail penetration rate of new energy vehicles in June was 48.4%, an increase of 13.5% over the same period last year. According to the current market trend, it is only a matter of time before the market share of new energy vehicles exceeds that of traditional fuel vehicles.

In June, the domestic retail market of independent brands was 1.03 million, up 10% from the same period last year, and the domestic share in the same month was 58.5%. The traditional car companies in the head performed well in transformation and upgrading, and the brand share of traditional car companies such as BYD, Chery, Geely and Changan Automobile increased significantly. The retail share of mainstream joint venture brands was 480000, down 27% from the same period last year, with a domestic share of 27.2%, including 18.6% for German brands, 14.3% for Japanese brands and 6.3% for American brands. Luxury car retail sales of 250000 vehicles, down 17% from the same period last year, with a market share of 14.2% in the month.

The Federation said that the uncertainty of the external environment of the economy increased significantly in June, the internal effective demand was still insufficient, and some expectations of enterprises and residents were not strong. However, with the gradual effect of the national policy of "trade-in", the introduction and follow-up of corresponding policies and measures in various localities, the release of accounts in Beijing to stimulate consumption, and the phased cooling of the price war of new products in the car market, the "618" promotion pulled a sprint at the end of half a year. The consumption enthusiasm of the wait-and-see groups in the early market was stimulated, and the national passenger car market maintained a relatively good stage of development in June.

According to the list of retail sales of domestic car companies released by the CAS, it is not difficult to see the great pressure of market competition. Only three of the ten manufacturers have achieved growth, including BYD, Geely and Chery, of which Chery grew by 53.6% compared with the same period last year. FAW-Volkswagen, SAIC-Volkswagen, Changan Automobile, FAW Toyota and other manufacturers all declined.

As the only fully electric brand, BYD car (including BYD / Teng Teng / equation Leopard / look up) retailed 280000 vehicles, up 21.1% from a year earlier. However, BYD's growth has slowed as competition in the new energy vehicle market intensifies. Since the beginning of this year, BYD has repeatedly adjusted the price strategy of its models, and at the beginning of the year, with the slogan "electricity is lower than oil", BYD launched the "glory version" of some series of models one after another, pushing the price of A-class cars to less than 80,000 yuan. At the end of May, BYD's new Qin L DM-i and Seal 06DM-i models had a minimum price of less than 100000 yuan, which had an impact on the B-class car market.

Since BYD, Geely and Chery have sold 131000 and 92000 cars, respectively. Among them, Chery Automobile achieved a substantial growth, reaching 53.6%, the largest increase among the top 10 manufacturers, far exceeding other manufacturers. Geely also performed well, selling 131000 vehicles a month, up 17.0 per cent from a year earlier. Geely raised its full-year sales target by about 5 per cent from 1.9 million to 2 million because of the good performance of its brands.

Compared with the above-mentioned independent car companies, Changan Automobile obviously lacked momentum, with sales falling 25.6% in June from a year earlier to 88000 vehicles, the biggest drop on the list. According to KuaiBao, Changan car sales in Chongqing increased 4.4% year-on-year, Hebei Changan and Hefei Changan both declined, especially Hefei Changan, which fell by 17.9%.

As for other independent manufacturers, such as Great Wall Motor, they fell out of the top 10. According to KuaiBao, Great Wall Motor sales totaled 98000 units in June, down 6.55% from a year earlier and a negative growth for two consecutive months. All its brands except tanks declined, especially Wei Brand halved directly.

Let's take a look at the joint venture brand, the overall performance is not optimistic, which is the main reason for the sharp decline in fuel vehicle sales. Take North and South Volkswagen as an example, although FAW-Volkswagen (including Volkswagen / Audi / Jetta) sales are second only to BYD with 133000 vehicles, down 25.5% from a year earlier, making it the biggest decline in joint ventures. SAIC Volkswagen (including Volkswagen / Audi / Skoda) sales fell to sixth, 83000 vehicles, down 15.9% from the same period last year.

Japanese car companies are even more bleak. Guangzhou Auto Toyota and FAW Toyota all made it into the top 10, but both fell more than two digits, while Dongfeng Nissan, Guangzhou Automobile Honda and Dongfeng Honda all fell out of the top 10, while Guangzhou Auto Toyota made it into the top 10. Its sales fell 19.2% year-on-year to 70000 vehicles, and FAW Toyota dropped 10.5% to 63000 vehicles. It has to be admitted that Japanese brands are declining in the domestic market. With the formation of technical barriers in the electrification and intelligence of independent brands, consumers begin to turn their attention to more economical and affordable domestic cars, and Japanese cars are becoming more and more difficult to be recognized by Chinese consumers. even if the car is sold at a lower price, it is also difficult to get the favor of consumers.

Among the top 10 manufacturers, Tesla China ranked ninth at 59000, but fell 20.1 per cent from a year earlier, while brilliance BMW was 56000, down 5.8 per cent from a year earlier.

Since the beginning of the year, the automobile market is facing unprecedented fierce competition. At present, the new energy vehicle industry has shown a state of steady growth, and the enterprises with the layout of electric vehicles have the potential for growth, which makes the life of the traditional joint venture manufacturers more and more difficult, resulting in the embarrassing situation that oil cars are difficult to sell and trams are not popular. In particular, the collective decline of Japanese brands is a typical example. In the context of independent brands accelerating the layout of new energy, the market share of joint venture brands continues to decline, how many other brands can withstand the market pressure?

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