China's July Auto Market New Energy Vehicles Shine Amidst Challenges

TapTechNews August 3rd news, Cui Dongshu of the China Passenger Car Association analyzed the national auto market in July yesterday, mentioning that the year-on-year decline in the terminal sales of the auto market in that month further narrowed, and new energy vehicles benefited particularly significantly.

TapTechNews learned that Cui Dongshu said that in July, due to factors such as the traditional off-season of production, insufficient market demand, and extreme weather such as high temperature and flood disasters in some areas, the overall market trend was not strong. But as the effect of the national 'trade-in for new' policy gradually emerged, as of noon on July 25th, the information platform for vehicle scrapping and renewal subsidies had received 364,000 applications for vehicle scrapping and renewal subsidies, and the daily increase had exceeded 10,000, and the significant increase in the declaration volume reflected the gratifying pulling effect of scrapping and renewal.

Referring to the 'Several Measures on Increasing Support for Large-scale Equipment Renewal and Consumer Goods Trade-in for New' issued by the National Development and Reform Commission and the Ministry of Finance on July 25th, which mentioned that the relevant departments will increase the subsidy standard for vehicle scrapping and renewal. The new subsidy standard is increased to 20,000 yuan for purchasing new energy passenger cars and 15,000 yuan for purchasing fuel passenger cars with a displacement of 2.0 liters and below. With the subsidy advantage of 5,000 yuan more for new energy vehicles than fuel vehicles for scrapping and renewal, the consumption enthusiasm of the new energy vehicle market is further stimulated, and the market performance of plug-in hybrids and range extenders is further strengthened, the year-on-year decline in the terminal sales of the auto market in July is further narrowed, showing a trend of 'not weak in the off-season', and new energy vehicles benefit particularly significantly.

Cui Dongshu also said that recently the market advantage of the leading new energy enterprises has continued to expand, and the market differentiation under different rights of oil and electricity has intensified, and the penetration rate of new energy has continuously increased. In June 2024, the wholesale sales of new energy passenger cars of the national passenger car market among manufacturers with monthly sales of more than 10,000 units accounted for 90.6% of the total monthly sales of new energy passenger cars in June, and the estimated sales of these manufacturers with monthly sales of more than 10,000 units in July is 860,000 units. According to the predicted structure ratio of last month, the wholesale sales of new energy passenger cars in the whole country in July is about 950,000 units. Judging from the domestic retail, the predicted new energy penetration rate reaches 50%.