The Strong Influence of Chinese Auto Market on the World and Its Trend
TapTechNews July 4th news, today Cui Dongshu, the secretary-general of the China Passenger Car Association, posted that the world auto sales in May 2024 reached 7.27 million units, a year-on-year decrease of 1% and a 4% increase from April. In May 2024, it is still slightly 10% lower than the peak in May 2018, at the median level of previous years. The sales from January to May 2024 are 35.66 million units, with a year-on-year increase of 3%. The world share of Chinese automakers in May 2024 is 33%.
The Chinese auto market has an extremely huge influence on the world auto market. From 2016 to 2018, the Chinese auto accounted for about 30% of the world, and it dropped to 29% in 2019, but still has an absolute advantage. The share recovered to 32% in 2020-2021. In 2022, the Chinese share rose to 33%. In 2023, the Chinese share remained at 34%, of which the low level at the beginning of the year is the normal manifestation of the Spring Festival factor and the withdrawal of the car purchase tax preferential policy. In 2024, the Chinese auto market gradually returns to normal, and in addition to the strong export, so the Chinese sales share continues to strengthen. The Chinese market warmed up from March to May 2024, and in May the Chinese accounted for 33% of the world share, on par with the previous years' level.
TapTechNews noticed that the article said that from a global perspective, the Chinese auto market recovered strongly in 2024, and Chinese automakers such as BYD, Geely Automobile, and Changan Automobile have the most prominent recovery effect, while the Asian group represented by Toyota and Kia is still performing poorly. In the past two years, the international chip shortage has had a relatively small impact on the Chinese auto market, but instead has promoted the very strong performance of Chinese auto exports, seizing a huge international market supply and demand gap and obtaining a rare development opportunity. As a highly monopolistic industry like automotive chips, this supply-side contraction will bring significant opportunities for the rise of the Chinese supply chain. The recent rapid development of new energy, the strong trend of Chinese independent automakers, and the development of electrification have also led some international automakers gradually moving towards decline.