For the third consecutive month, New Vitality autos dominated automobile sales in September, accounting for nearly the entirety of gross sales. The penetration rate for retail gross sales last month was 53.3%. Notwithstanding a recent trend emerges, showing that nearly 75% of Chinese-branded vehicles sold today are NEVs.
According to data from the China Passenger Automobile Association, sales of new energy vehicles (NEVs) reached 1.123 million units. New electric vehicle (NEV) gross sales surged by a significant 50.9% year-on-year in September, compared to the same period last year.
The total figures for the automobile market, however, present a significantly different trend. Gross sales for September totaled $2.109 million, representing a year-over-year increase of 4.5%. This marks the end of a five-month decline, with the current upturn being the second consecutive month of growth.
According to the data, the sale of internal combustion engine (ICE) vehicles in China has been in decline, with the increase mainly attributed to the growing popularity of new energy vehicles (NEVs), which are gradually eroding ICE sales figures.
The Chinese electric vehicle market saw a significant surge in the third quarter, with NEV (new energy vehicle) sales reaching 53.3%, representing a substantial increase of 16.4 percentage points compared to the same period last year, when NEVs accounted for just 36.9% of total sales?
According to industry standards, the market share of self-owned manufacturers stands at a notable 74.9%. In fact, only one out of every four automobiles still relies solely on internal combustion engines.
In September, traditional Chinese automakers dominated the new energy vehicle (NEV) market, claiming an impressive 73%, representing a one percentage point increase over the previous year. NEV sales from three-way partnership manufacturers have taken a significant hit, with these players now controlling just 3.4% of the market – a 2.3 percentage point decline since September 2023.
While the established players saw minimal growth, the newcomers experienced significant gains, with their market share increasing by 2.6 percentage points to 16.5%. Tesla also reported a gain of 0.6 percentage points, thereby increasing its market share to 6.4%.
Despite the increasing popularity of electric vehicles (EVs), premium model automobile gross sales still have a significant market presence for internal combustion engine (ICE) vehicles. The NEV (New Energy Vehicle) market penetration rate in China for this phase stands at approximately 33.5%.
Editor’s be aware:
New data suggests that 2024 could be the first year in which new energy vehicles (NEVs) account for more than 50% of auto sales in China. Moreover, this underscores the increasingly desperate situation facing joint ventures in China. Without embracing innovative fashion trends, they cannot hope to remain competitive in the Chinese market.
What are some of the most important investment strategies that investors should consider when considering the market trends?
