Cui Dongshu: The retail performance of the passenger car market in October is good, and the manufacturers' inventory turnover is obvious.

Secretary General Cui Dongshu of the China Passenger Car Association wrote that with the decrease in market prices and the large promotion efforts in February-April, consumers waited for a period of time before gradually releasing their buying enthusiasm in the third quarter. With the promotion of the national scrap update subsidy policy, the retail performance of passenger cars in October 2024 was good. Manufacturers have been relatively conservative in recent months, resulting in significant destocking. The retail growth of passenger cars in October 2024 was the same as wholesale. Due to the weaker demand for cars in October, the proportion of car demand decreased. Car retail sales were lower than SUV retail sales in October, with better performance in the high-end B-segment car market. Sales of A00-level cars increased, but sales of A0-level cars suffered losses. The SUV market showed strong high-end characteristics, with B and C-level SUVs performing better compared to last year. In terms of structure, low-end consumption was weak, while high-end consumption was strong. The B-segment of the car market performed well, while the SUV market showed strong high-end characteristics, with B and C-level SUVs performing better compared to last year. I. Trends in the economy passenger car market 1. Performance of A00-level cars In October 2024, the wholesale of A00-level cars was 154,900 units, accounting for 14.07% of the wholesale market share, with a year-on-year increase of 54% compared to the same period last year. Retail sales in October 2024 increased by 38% compared to the same period last year, with a month-on-month increase of 15%. From January to October 2024, the wholesale quantity was 914,700 units, a cumulative increase of 49% in factory wholesale sales; the domestic retail quantity was 939,800 units from January to October 2024, with a cumulative increase of 33% in retail sales. The A00 market has returned to a competitive situation 20 years ago, with companies like BYD, Geely, Changan, and Chery having good A00-level products. Recently, diversified A00-level main models and new products from BYD, Geely, Changan, Chery, etc. have performed well, showing the potential for incremental growth in mini electric vehicles. 2. Trends in main model market of A0-level cars In October 2024, the wholesale of A0-level cars was 113,500 units, accounting for 10.3% of the wholesale market share, with a year-on-year decrease of 14% compared to the same period last year. Retail sales in October 2024 decreased by 23% compared to the same period last year, with a month-on-month increase of 8%. From January to October 2024, the wholesale quantity was 765,700 units, a cumulative decrease of 26% in factory wholesale sales; the domestic retail quantity was 502,000 units from January to October 2024, with a cumulative decrease of 28% in retail sales. The trend of replacing fuel cars with independent electric cars is evident, and the competition landscape has shifted from joint ventures to the independent trend. Previously, Japanese brands Toyota and Honda maintained a strong position, but in recent years, the trend of independent fuel-efficient entry-level cars has been relatively challenging. The trend of full electrification of A0-level cars is evident, with almost no strong fuel vehicle products, highlighting the clear advantage of independent pure electric products. 3. Sales trends of A0-level SUVs In October 2024, the wholesale of A0-level SUVs was 236,600 units, accounting for 15.51% of the wholesale market share, with a year-on-year increase of 7% compared to the same period last year. Retail sales in October 2024 increased by 2% compared to the same period last year, with a month-on-month increase of 27%. From January to October 2024, the wholesale quantity was 1.71 million units, a cumulative decrease of 8% in factory wholesale sales; the domestic retail quantity was 1.03 million units from January to October 2024, with a cumulative decrease of 13% in retail sales. The mainstream small SUVs from Japan and South Korea have basically exited the market, and independent electric vehicles have performed strongly. II. Trends in the A-level passenger car market 1. Trends in main model market of compact cars In October 2024, the wholesale of A-level cars was 423,800 units, accounting for 38.49% of the wholesale market share, with a year-on-year decrease of 8% compared to the same period last year. Retail sales in October 2024 decreased by 2% compared to the same period last year, with a month-on-month increase of 4%. From January to October 2024, the wholesale quantity was 3.58 million units, a cumulative decrease of 14% in factory wholesale sales; the domestic retail quantity was 3.40 million units from January to October 2024, with a cumulative decrease of 11% in retail sales. The new energy segment dominates the mainstream car market, with BYD taking the lead and Volkswagen's fuel cars still having a certain market space. Fuel cars are still the most practical option for mainstream household cars. 2. Trends in main model market of compact SUVs In October 2024, the wholesale of A-level SUVs was 832,500 units, accounting for 54.59% of the wholesale market share, with a year-on-year increase of 15% compared to the same period last year. Retail sales in October 2024 increased by 12% compared to the same period last year, with a month-on-month increase of 13%. From January to October 2024, the wholesale quantity was 6.23 million units, a cumulative increase of 10% in factory wholesale sales; the domestic retail quantity was 4.64 million units from January to October 2024, with a cumulative increase of 4% in retail sales. The mainstream SUV market landscape is rapidly changing, with BYD and Chery showing strong performance in SUVs, achieving a comprehensive breakthrough in independent SUVs domestically and internationally. III. Trends in the B-level passenger car market 1. Trends in the B-level car market In October 2024, the wholesale of B-level cars was 351,300 units, accounting for 31.91% of the wholesale market share, with a year-on-year increase of 20% compared to the same period last year. Retail sales in October 2024 increased by 21% compared to the same period last year, with a month-on-month increase of 3%. From January to October 2024, the wholesale quantity was 3.08 million units, a cumulative increase of 22% in factory wholesale sales; the domestic retail quantity was 2.78 million units from January to October 2024, with a cumulative increase of 21% in retail sales. The high-end car market dominated by Japanese brands is rapidly shrinking, with the rapid rise of high-end independent new energy vehicles. The high-end market for rental online ride-hailing services is being dominated by independent electric vehicles. 2. Trends in the B-level SUV market In October 2024, the wholesale of B-level SUVs was 405,400 units, accounting for 26.5% of the wholesale market share.Wholesale increased by 28% compared to the same period last year, and remained flat compared to last month; Retail increased by 30% compared to the same period last year, and increased by 1% compared to last month in October 2024. From January to October 2024, wholesale quantity was 3.1296 million units, with a cumulative increase in wholesale sales of 21% from the manufacturer; From January to October 2024, domestic retail quantity was 2.7635 million units, with a cumulative increase in retail of 22%.High-end SUV market's independent new energy vehicles are rapidly rising, weakening the high-end advantages of traditional fuel vehicles, and recent high-end models like BMW have temporarily slowed down. 3. Trend of B-level and above MPV market B-level MPV In October 2024, the wholesale volume was 56,900 units, accounting for 56.59% of the wholesale market share, with a 4% year-on-year increase in wholesale compared to the same period last year, and a 3% decrease from the previous month. Retail sales in October 2024 increased by 10% compared to the same period last year, with a 2% decrease from the previous month. From January to October 2024, wholesale volume was 495,600 units, with a cumulative increase of 1% in manufacturer wholesale sales; from January to October 2024, domestic retail volume was 476,800 units, with a cumulative increase of 2% in retail sales. The high-growth phase of the MPV market has shifted to a low-growth trend. The performance of Tongche and Guangqi's MPVC is strong, while the advantages of Japanese MPVs are rapidly declining, and the GL8 is also in a period of adjustment.