Chinese Vehicle Sales in Transition: Declines and Highs

Global sales of vehicles manufactured in China experienced a slight decline of 2% in September 2024, reaching 2.809 million units compared to 2.858 million the previous year, according to the China Association of Automobile Manufacturers (CAAM). While domestic sales rose by 3% to 2.484 million due to stimulus measures, losses in the export sector led to a deterioration of the overall result. Exports dropped significantly by 27% to 325,000 vehicles, due to weakening demand in key overseas markets and increasing trade conflicts with North America and Europe. Nevertheless, strengthened domestic purchases through government interventions, such as doubled subsidies and eased credit conditions, managed to compensate for the shortfall. These measures were implemented against the backdrop of slowed GDP growth, which fell to 4.7% in the second quarter, below the 5% target set for the year. Despite these challenges, China's global vehicle sales in the first nine months of the year saw an increase of just over 2% to 21.571 million units. The passenger vehicle sector grew by 3%, while commercial vehicle sales declined by 2%. Notably, there was a 27% rise in exports, including a 12% increase in shipments of new energy vehicles. Individual manufacturers performed variably: SAIC Motors experienced a sales slump of 35% in September, while BYD reported impressive growth of 32%. Geely achieved a 21% increase worldwide, whereas Tesla reported a slight decline in its Chinese exports but managed a 6% increase in domestic sales.