On February 8, 2024, the China Passenger Car Market Information Association (hereinafter referred to as the China Passenger Car Association) released a detailed analysis report on the national passenger car market, revealing the active situation of the domestic automobile market in January this year. According to statistics, the retail sales of China's passenger car market reached 203 in January50,000 units, a significant increase of 574%, despite a 13.5% month-on-month decline9%, but the overall recovery is strong.
According to the in-depth analysis of the Passenger Car Association, the main driving force for the year-on-year growth of retail sales in the auto market in January was the difference in consumption time brought about by the Spring Festival, and consumers purchased cars in advance to meet the travel needs during the festival. In addition, some overdrafts in December 2023 and the expected recovery of some models**, as well as unfavorable factors such as the reduction in local consumption promotion activities such as the issuance of consumption vouchers, combined with the overall sales trend in January.
In terms of brand structure, the performance of independent and joint venture automakers shows significant differences. In January, the retail sales of domestic brands reached 1.12 million units, an increase of 77% year-on-year, and although it decreased by 10% month-on-month, its market share continued to expand. The share of domestic brands in the domestic retail market climbed to 55 in the month1%, an increase of 59 percentage points; The cumulative market share for the year was 52%, an increase of 46 percentage points. At the same time, the wholesale market share of independent brands has also increased significantly, reaching 605%, an increase of 8 percent year-on-year2 percentage points. Thanks to the dual increment of the new energy market and the export market, the transformation and upgrading of the leading traditional independent brands represented by Geely, BYD, Chery, Changan, Great Wall, etc. have achieved remarkable results, and their market share has increased significantly.
In contrast, the retail sales of mainstream joint venture brands in January were 670,000 units, up 43% year-on-year, but down 15% month-on-month. The retail share of German brands fell to 192%, down 38%, while Japanese brands remained basically flat at 167%。The market share of U.S. brands shrank to 65%, down 1 percent year-on-year3 percentage points.
It is worth noting that due to the general increase in the sprint efforts of joint venture car companies in December last year, the retail sales of fuel vehicles in January were **15% month-on-month. On the contrary, independent automakers operated relatively steadily in December, resulting in a 23% month-on-month increase in retail sales of fuel vehicles in January, among which Geely, Chery, Changan and other brands performed particularly well.
In terms of brand sales, Geely Automobile surpassed it in January, surpassing BYD in wholesale sales. According to the data, Geely's total sales in January reached 213,487 units, up 110% year-on-year and about 46% month-on-month, and the new energy vehicle segment sprung up, with monthly sales reaching 65,826 units, up 591% year-on-year and more than 14% month-on-month. In comparison, BYD's sales totaled 201493 units in January, up 33 percent year-on-year9%, although slightly inferior to Geely, but still maintain a steady growth trend.
To sum up, in January, China's passenger car market showed a unique market dynamics under the influence of the Spring Festival effect and the competition strategy of various brands, and independent brands won more development space in the fierce market competition by virtue of the advantages of new energy and export markets. With the changes in the market environment and the strategic adjustment of various car companies, the pattern of China's auto market will be more worthy of expectation in the future.