Passenger Vehicle Association: From November 1st to 10th, the retail sales of passenger vehicles in the market reached 567,000 units, a year-on-year increase of 29%.

On November 13, data from the China Passenger Car Association showed that from November 1st to 10th, 567,000 passenger cars were retailed in the market, a 29% increase compared to the same period last year, but a 3% decrease from the previous month. So far this year, a total of 18.02 million cars have been retailed, a 4% increase compared to the previous year. From November 1 to 10, a total of 667,000 passenger cars were wholesaled by manufacturers nationwide, a 41% increase compared to the same period last year and a 45% increase from the previous month. So far this year, 21.84 million cars have been wholesaled, a 5% increase compared to the previous year. From November 1 to 10, 310,000 new energy passenger cars were retailed, a 70% increase compared to the same period last year and a 10% increase from the previous month. So far this year, a total of 8.638 million new energy cars have been retailed, a 41% increase. During the same period, 350,000 new energy passenger cars were wholesaled by manufacturers nationwide, a 78% increase compared to the same period last year and a 36% increase from the previous month. So far this year, a total of 9.629 million new energy cars have been wholesaled, a 38% increase. 1. The passenger car market in November 2024 started off strong. During the first week of November, an average of 57,000 passenger cars were retailed each day, a 29% increase compared to the same period last year and a 3% decrease from the previous month. From November 1 to 10, a total of 567,000 passenger cars were retailed, a 29% increase compared to the same period last year and a 3% decrease from the previous month. So far this year, 18.02 million cars have been retailed, a 4% increase compared to the previous year. Due to the national scrappage and replacement policies encouraging subsidies, recent car purchases have shown strong growth. In particular, the subsidies for electric vehicles under the replacement policies in different regions are higher by 1000-5000 yuan compared to traditional fuel vehicles, leading to fair competition between electric and fuel vehicles, a significant highlight of local policies. The national scrappage policy strongly supports new energy vehicles, and after the balance of local policies, there has been an improvement in the survival pressure on dealers. Recent domestic stock market performance has experienced strong growth under favorable policies. Referring to the results from 2014 to 2016, during sudden stock market booms, more funds tend to enter the stock market, making it difficult for the car market to achieve rapid growth simultaneously. The recent long-term stability and growth of domestic A-share stock market will lead to a sustained trend of the car market. 2. The sales volume of passenger car manufacturers nationwide is gradually strengthening in November 2024. During the first week of November, an average of 67,000 passenger cars were wholesaled by manufacturers each day, a 41% increase compared to the same period last year and a 45% increase from the previous month. From November 1 to 10, a total of 667,000 passenger cars were wholesaled by manufacturers nationwide, a 41% increase compared to the same period last year and a 45% increase from the previous month. So far this year, 21.84 million cars have been wholesaled, a 5% increase compared to the previous year. The trend of manufacturer sales volume in November continues to be strong. The replacement policy has started to support the scrappage subsidy policy, igniting the market. The scrappage policy favors new energy vehicles, and its effects will gradually decrease. However, the stimulus effect of the replacement policy is greater than that of scrappage, especially for fuel vehicles. The efforts to reduce inventory in the passenger car industry this year have been very strong. Due to the continuous destocking efforts of joint venture car companies, coupled with recent cautious production levels, the overall inventory of manufacturers and dealers in passenger cars has decreased by 940,000 vehicles from January to October (compared to only 110,000 vehicles in the same period last year). Dealers are facing challenges in operations due to the need to reduce inventory. Typically, November is a period for seasonal inventory buildup in the passenger car market, as the demand for car purchases is higher from winter to Chinese New Year. During this time of year, there is a reasonable demand for inventory buildup, and dealers have increased their purchasing pace in November, reflecting an improvement in channel confidence. 3. Average prices of passenger cars in October 2024 have slightly decreased. According to data from China Automobile Association, a total of 17.84 million cars have been retailed from January to October this year, a 3% increase compared to the previous year. With the continued efforts of the national scrappage and replacement policies to promote subsidies, 2.26 million passenger cars were retailed nationwide in October, an 11% increase compared to the previous year and a 7% increase from the previous month. The market vitality is gradually recovering. According to data from China Automobile Association, the average selling price of cars in the market had been increasing in the first half of 2024, reaching 186,000 yuan. With the help of the national scrappage and replacement policies, there has been an increase in the sales proportion of entry-level car models. In recent years, the sales structure of price segments in the national passenger car market has shown an upward trend, with the average selling price decreasing from 186,000 yuan per car in the first half of 2024 to 168,000 yuan per car in October. This indicates an overall improvement in all price segments of the market. The popularization of private cars in China is still at a relatively low level compared to other countries in the world, with only 200 passenger cars per 1,000 people. There is huge potential for further development in consumer demand. In recent years, the proportion of car models priced above 300,000 yuan has been increasing steadily, but this trend started to decrease this year. In 2023, the retail proportion of cars priced between 300,000 and 400,000 yuan was 10%, which stabilized in 2024, but decreased to 7.9% in October. The retail proportion of cars priced above 400,000 yuan was 5% in 2023, which decreased to 3% in October this year. The trend of increasing high-end development in the passenger car market due to the growth of new energy vehicles is evident, but the decline in traditional luxury cars is more severe. 4. China's domestic passenger car market has huge growth potential. Our recent export performance has been outstanding, but it is important to recognize the huge potential of domestic demand. According to data from the China International Statistical Yearbook released by the National Bureau of Statistics, in 2021, China's passenger car ownership per 1,000 people was only 183 vehicles, which is relatively low compared to other countries such as Brazil, Mexico, Kazakhstan, and Russia. Furthermore, according to the same data, China only has 54 passenger cars per kilometer of road, much lower than the levels in Europe, Japan, and Korea. Recently, Republican presidential candidate Trump declared victory in the 2024 presidential election. During his campaign, Trump had made some radical policy statements that attracted worldwide attention. The most potential for development in domestic consumption lies in the popularization of private cars. Despite the past suppression of car consumption by real estate and high housing prices, there is still enormous room for improvement. Currently, private consumption contributes very little to China's economic growth.The popularization of private cars requires more tax revenue and financial incentives to promote consumption policies.The structural growth highlights of new energy vehicles in October are prominent. The trend of vehicle power segmentation market in October this year is significantly different from last year. In October this year, the performance of A-level plug-in hybrid vehicles was outstanding, showing a situation of month-on-month growth, while the economic electric vehicles also showed strong growth. On the other hand, the high-end electric vehicles and extended-range electric vehicles in October showed a clear slowdown in trend. Last year, the extended-range electric vehicles showed strong growth in October. The core market for new energy vehicles in 2023 is still the second family car, while the demand for the second car is expected to weaken in 2024. In 2024, the replacement demand will become the main driver, and the core market for pure electric vehicles will be the highly competitive B-level electric vehicle market. The economic electric vehicles have always maintained their position as the main leader in the market, with the A0 level being sluggish in the first half of this year. The increase in the car purchase tax preference standard to 200 kilometers in July temporarily suppressed the growth of A00 level. The recent increase of 5000 yuan in the subsidy for scrapping and purchasing new energy vehicles compared to fuel vehicles has shown a significant incremental effect. In the coming months, the overall performance of the main domestic manufacturers of economic electric vehicles will be relatively strong. The sluggishness of pure electric vehicles mainly comes from the decline in core segment market, but the recent scrapping replacement policy has driven the growth of entry-level electric vehicles and plug-in hybrids. The A0 level pure electric vehicles have dropped from being the first main leader in October last year to the second-tier sales, but the trend has improved from August to October. On the other hand, the trend of A-level pure electric vehicles in October is relatively weak. The A-level electric vehicle market is still driven by the demand from ride-hailing and rental services, but the sales of A-level pure electric vehicles have significantly dropped after the saturation of the ride-hailing market. The trend of plug-in hybrids for private demand has rebounded recently, and exports have also driven the increase in plug-in hybrids.