Jamie Spencer
China’s economic landscape is showing robust improvement as a slew of new policies and incentives come into play, positively impacting various sectors. One standout area is the automotive industry, where production and sales are seeing impressive growth. In October 2024, automakers accelerated production, supported by government incentives and consumer demand, driving an uptick in both monthly and yearly metrics. As companies regain confidence and ramp up output, China’s automotive market is positioned for a strong finish to the year.
Rising Auto Production and Sales in October 2024
China’s auto industry posted solid results in October 2024, with passenger car sales and production rising on both a month-on-month and year-on-year basis. The Chinese government’s incentives for vehicle trade-ins and promotional events, such as motor shows and new model launches, fueled consumer demand. These initiatives kept the market vibrant, particularly for passenger vehicles, while commercial vehicles showed more modest growth.
NEV Market Sees Unprecedented Growth
One of the biggest drivers of China’s automotive success has been the surge in new energy vehicles (NEVs). October’s NEV production reached a record high of 1.463 million units, a remarkable 48% increase from the previous year. Meanwhile, NEV sales climbed 49.6% year-on-year, reaching 1.43 million units, which represented 46.8% of the total auto sales for the month.
Within the domestic market, NEV sales rose 10.7% month-on-month and 56.5% year-on-year, reflecting strong consumer interest in environmentally-friendly options. NEV exports also experienced growth, with 128,000 units shipped abroad in October, a 16% increase from the previous month and a 3.6% rise compared to the previous year.
Strong Export Performance Driven by Leading Automakers
Automakers in China capitalized on export opportunities, with 542,000 vehicles shipped overseas in October, marking a 0.5% month-on-month increase and an 11.1% year-on-year gain. Passenger vehicle exports were a major contributor, with 465,000 units exported—a 1.8% increase month-on-month and a 10.7% rise year-on-year. Commercial vehicle exports, although slightly down from the previous month, saw a year-on-year increase of 13.6%.
Chery led China’s auto exports in October, shipping 112,000 vehicles abroad, up 18.9% from last year. Meanwhile, BAIC Group demonstrated remarkable growth, with exports doubling year-on-year to 30,000 units, underscoring China’s export strength in the global market.
Year-to-Date NEV Sales and Export Growth
China’s commitment to new energy solutions is evident in the January-October data. The country produced and sold nearly 9.8 million NEVs in the first ten months, achieving a 33% and 33.9% year-on-year increase, respectively. NEVs accounted for an impressive 39.6% of total auto sales during this period. Domestic NEV sales reached 8.692 million units, a 38.3% rise from last year, while NEV exports hit 1.058 million units, a 6.3% year-on-year growth.
China’s Position in the Global Automotive Industry
With total auto exports reaching 4.855 million units in the January-October period—a 23.8% increase year-on-year—China is asserting its position as a formidable player in the global automotive market. Passenger vehicle exports surged 24%, and commercial vehicle exports rose by 22.5% year-on-year. These figures highlight China’s growing influence and the increasing demand for Chinese vehicles worldwide.
Looking Ahead: Strong Year-End Projections
The positive trends in China’s automotive industry are expected to persist, driven by strong consumer demand and promotional efforts from automakers and dealerships as the year draws to a close. With the cumulative effect of supportive policies, incentives, and continued NEV popularity, the industry is poised for a robust performance in the final months of 2024.
China’s automotive industry is on a steady path of growth, bolstered by government policies, a thriving NEV market, and expanding exports. As these positive factors converge, China is setting a new standard in the global auto market and further positioning itself as a leader in new energy vehicle production and exports.
