New Vehicle Sales in China Reach 789,000 during July 1-27, Marking a 15% Increase Compared to the Previous Year
China's new energy vehicle (NEV) market experienced a mixed performance in July, with sales figures showing both growth and decline compared to previous months and the same period last year.
According to data from the China Passenger Car Association (CPCA), NEV retail sales from July 1 to 20 increased by 23 percent year-on-year, reaching 537,000 units. However, there was a 12 percent month-on-month decrease. This decline can be attributed to the usual summer slowdown in demand and intensifying competition in the market.
During the same period, wholesale sales of passenger vehicles reached 1.505 million units, up 17 percent year-on-year, but down 25 percent month-on-month. The average daily retail sales of passenger vehicles during the first three weeks of July were 39,660 units, up 1 percent year-on-year, but down 6 percent from the same period last month.
However, the market slowdown was more pronounced in the latter part of July. From July 21 to 27, daily wholesale sales of passenger vehicles averaged 66,611 units, up 5 percent year-on-year but down 30 percent compared to the same period last month. NEV wholesale sales during this period were 816,000 units, up 17 percent year-on-year, but down 20 percent month-on-month.
One of the major players affected by the market slowdown and increased competition is BYD, the largest Chinese EV manufacturer. The company reported a 9.7 percent drop in monthly sales from 377,628 vehicles in June to 341,030 in July. This decline was influenced by fierce price competition in the market, with BYD leading the price war among major EV manufacturers.
Other companies like Li Auto and Nio also experienced declines in vehicle shipments in July, while brands like Xpeng and Xiaomi managed gains. This mixed performance across the industry highlights the market turbulence faced by NEV manufacturers in China.
Dealer feedback indicated that BYD maintained its retail price discount policy in July similar to June, leading to flat new order flow month-on-month but still lower retail deliveries.
Despite the market challenges, the NEV sector in China continues to show strong growth this year. So far, cumulative wholesale sales of Chinese passenger NEVs have reached 7.264 million units, up 35 percent year-on-year. Cumulative retail sales of passenger vehicles reached 12.346 million units, up 11 percent year-on-year. The penetration rate of NEVs in retail sales was 54.6 percent from July 1 to 27, and 50.68 percent year-to-date.
In addition to the traditional sales data, China EV insurance registrations for the week ending July 27 show that Nio registered 3,250 vehicles, Tesla 10,620, and Xiaomi 7,590.
In summary, the July sales slowdown can be attributed to seasonal effects and increased competitive pressure, which have affected manufacturers unevenly across China’s NEV sector. Despite these challenges, the NEV market in China continues to show strong growth this year.
- Tesla, one of the major players in China's EV industry, reported an increase in China EV insurance registrations for the week ending July 27, with 10,620 new vehicles registered.
- In July, Nio, another key player in China's EV market, experienced a decline in vehicle shipments, registering 3,250 vehicles through China EV insurance registrations for the week ending July 27.
- The mixed performance in China's NEV sales extends beyond major players, as companies like Li Auto and Nio have reported declines, while brands like Xpeng and Xiaomi have managed gains.
- Despite the market slowdown and increased competition, China's NEV sector continues to show strong growth this year, with cumulative wholesale sales of Chinese passenger NEVs reaching 7.264 million units, a 35 percent increase year-on-year.
- The technology-driven automotive sector in China is undergoing significant turbulence, with changes in sales patterns affecting different companies within the NEV industry unevenly.
