AutoBeta(AutoBeta.net)08/13 Report--

On August 8, the HKIFA released its latest monthly market report. Data show that retail sales in the domestic passenger car market were 1.72 million in June 2024, down 2.8 per cent from a year earlier and 2.6 per cent month-on-month. Of this total, retail sales of traditional fuel vehicles were 840000, down 26 per cent from a year earlier and 7 per cent from a month earlier, while retail sales of new energy vehicles were 878000, up 36.9 per cent from a year earlier and 2.8 per cent from a month earlier. According to this calculation, the domestic retail penetration rate of new energy vehicles in July is 51.0%. In other words, fuel cars can no longer sell new energy vehicles.

In July, the domestic retail market of independent brands sold 1.06 million vehicles, up 13% from the same period last year, and the domestic share in that month was 61.8%. 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 440000, down 25% from the same period last year, with a domestic share of 25.6% in the same month, including 17.6% for German brands, 12.9% for Japanese brands and 5.8% for American brands, all declining year-on-year. Luxury car retail sales of 220000 vehicles, down 11% from a year earlier, also showed a decline in market share of 12.5% in the same month.

The Federation said that the uncertainty of the external environment of the economy increased significantly in July, although the internal effective demand was relatively insufficient, residents' consumption expectations were not strong. Recently, the state's "trade-in" passenger car scrapping and renewal policy has gradually taken effect, with the introduction and follow-up of corresponding policies and measures in various localities, and the release of consumption potential promoted by the policy is very good. Therefore, the trend of new energy vehicles in July is better than that expected by the forecasting team of passenger car manufacturers. After the decline in the scale of first-time buyers and the decline in the market share of traditional fuel vehicles caused by the impact of new energy vehicles, due to changes in car buyers and changes in new energy channels, the seasonal rhythm of the market weakens, and the characteristic of "not light in the off-season" is becoming more and more obvious.

According to the list of retail sales of domestic car companies published by the Federation of passengers, it is not difficult to see that the pressure of market competition is huge and polarization is very obvious. BYD, Chery and ideal cars have all skyrocketed, of which Chery increased by 51.0% compared with the same period last year. Chery is the manufacturer with the largest increase among the top 10 car enterprises, while the ideal car rose 49.4%, which is the first time it has entered the top 10 of domestic manufacturers. Changan, which is also a local manufacturer, plummeted, falling by 27.2%. Joint ventures such as FAW-Volkswagen, SAIC-Volkswagen, Guangzhou Auto Toyota and other joint ventures also fell sharply.

As the only fully electric brand, BYD car (including BYD / Teng Teng / equation Leopard / look up) retailed 312000 vehicles, up 35.2% from the same period last year. 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. July 29th, equation Leopard 5 is the whole department price reduction of 50, 000 yuan, the price is 23. 98-302800 yuan, the price reduction is carried out on the basis of keeping the configuration unchanged.

Since BYD, Geely and Chery have sold 118000 and 98000 cars, respectively. Among them, Chery Automobile achieved a substantial growth of 51.0%, which is the largest increase among the top 10 manufacturers, far exceeding other manufacturers. Geely also performed well, with a year-on-year increase of 3.8%, which is still worse than BYD and Chery, but it is not easy to achieve growth in the current market. Previously, Geely increased its full-year sales target from 1.9 million to 2 million.

The biggest bright spot on the list is that ideal cars are in the top 10 for the first time, with monthly sales of 51000 vehicles, an increase of 49.4% over the same period last year, ranking 10th on the list. At present, ideal cars on sale include L6, L7, L8, L8 and MEGA. In the future, the ideal car will focus on the pure electricity market. A few days ago, three pure electric SUV spy photos were exposed. These three models may be named M7, M8 and M9, and are expected to go on sale in 2025, mainly for a market of more than 300000 yuan.

Compared with the above-mentioned independent car companies, Changan Automobile once again suffered a sharp decline, falling 27.2% to 86000 vehicles compared with the same period last year, making it the biggest drop on the list. According to KuaiBao, car sales in Changan, Hebei Province, increased by 8.65% year-on-year, Chongqing Changan and Hefei Changan both declined, especially Hefei Changan, which fell by 44.31%.

As for other independent manufacturers, such as Great Wall Motor, they fell out of the top 10. According to Great Wall car sales KuaiBao, Great Wall car sales in July were 91300, down 16.32% from the same period last year, and sales declined for three consecutive months compared with the same period last year. All its brands except tanks declined, especially Wei Brand and Oula.

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) ranked third with 114000 vehicles, it fell 22.6% from the same period last year, making it the largest joint venture manufacturer. As for SAIC-Volkswagen (including Volkswagen / Audi / Skoda), sales ranked fifth at 88000 vehicles, down 11.8 per cent from a year earlier.

Japanese car companies are even more bleak. Guangzhou Auto Toyota and FAW Toyota are both in the top 10, but the differentiation is also very serious. Guangzhou Auto Toyota fell 17.1% year-on-year, while FAW Toyota grew 4.7% year-on-year. Dongfeng Nissan, Guangzhou Automobile Honda and Dongfeng Honda all fell out of the top 10, which is already the norm. 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.

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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