China’s total automobile sales grew by 3.7% year-on-year during the first 11 months of the year to reach 27.94 million units, according to data released by the China Association of Automobile Manufacturers (CAAM).
For the full year of 2024, China’s total car sales could reach 31 million units, it predicts.
Overseas markets have been a key growth driver. In the 11-month period, China exported 5.3 million vehicles, a year-on-year increase of 21.2%, while domestic sales reached 22.595 million units, representing a slight growth of 0.3% from a year earlier, showed the data.
Fuel-powered vehicles continue to dominate exports, with 4.203 million units exported during the period, marking a 26.7% year-on-year increase and accounting for 78% of total auto exports, while new energy vehicle (NEV) exports reached 1.141 million units, growing by 4.5%, according to the association.
Within the NEV category, exports of pure electric vehicles (EVs) fell by 10.8% year-on-year to 894,000 units, while plug-in hybrid vehicle exports surged by 180% to 246,000 units.
Pure EVs face multiple uncertainties in international markets. Europe remains a critical market for Chinese NEVs, especially EVs, however the European Commission (EC) in October 2023 launched an anti-subsidy investigation targeting Chinese-made EVs. On October 29, 2024, the EC announced formal anti-subsidy tariffs on EV imports from China, effective for five years starting October 30.
Plug-in hybrid vehicles have shown significant growth potential. Inadequate charging infrastructure overseas hinders the adoption of pure EVs, and icomparison, PHEVs are more affordable, have longer driving ranges, and hold great market potential abroad, said Chen Shihua, Deputy Secretary-General of CAAM.
From January to November 2024, Chery Automobile, SAIC Motor, and Changan Automobile ranked as the top three exporters, with Chery exporting 1.046 million units and BYD exporting 363,000 units.
In both domestic and international markets, NEVs are the primary growth drivers, while fuel-powered vehicle sales are declining. During the first 11 months of the year, NEV sales reached 11.26 million units, up 35.6% year-on-year, and accounting for 40.3% of total vehicle sales, an increase of about 10 percentage points. The CAAM expects annual NEV sales to reach 13 million units in 2024.
CAAM Chief Engineer Xu Haidong attributed domestic sales growth to policies for automobile vehicle trade-ins and renewals and he expressed hope that the policies would extend into 2025 to further stimulate consumption and drive domestic demand.
In April 2024, the Ministry of Commerce and Ministry of Finance announced subsidies for passenger car scrappage and renewals, and in August, they released guidelines on enhancing auto trade-ins, increasing the subsidy amounts. Initially, consumers received subsidies up to 10,000 for purchasing NEVs and 7,000 yuan for fuel-powered vehicles after scrapping their old cars, and the amounts were raised to 20,000 yuan and 15,000 yuan, respectively.
In addition to auto scrapping policies, local trade-in incentives have further boosted auto market activity. On July 24, the National Development and Reform Commission and Ministry of Finance released measures to support large-scale equipment renewals and consumer goods trade-ins, after which, local governments introduced regional trade-in subsidy programs.
Trade-in policies allow consumers to receive subsidies even if their vehicles do not meet the scrapping criteria, as long as they upgrade to new vehicles. On average, consumers trading in NEVs receive subsidies of 15,000 yuan, while those trading in fuel-powered cars receive 10,000 yuan
Although trade-in policies were implemented relatively late, their broader coverage has stimulated additional market demand. According to the Ministry of Commerce, as of December 9, over 5 million trade-in subsidy applications had been filed nationwide, including more than 2.44 million for vehicle scrapping and over 2.59 million for vehicle trade-ins.
