TapTechNews June 12, according to the Shanghai Securities Journal report on Tuesday, in view of the fierce "price war" phenomenon in the current Chinese auto industry, Cui Dongshu, the secretary-general of the Passenger Car Association Sub-committee, said that from January to May 2024, nearly 60 electric vehicles have reduced prices, which is indeed a "rare" price war. (Note: The Passenger Car Market Information Joint Sub-committee of the China Automobile Dealers Association, formerly known as the "Passenger Car Market Information Joint Committee" (PCA), was changed to the current name this year.)
Cui Dongshu pointed out that the background of the "price war" is the decline in the price of raw materials for new energy vehicles, the rapid introduction of new energy vehicle models, and the penetration rate of new energy vehicles reaching more than 40%. He believes that the price war is a manifestation of the systematic ability and an inevitable stage of industry development. After May this year, the "price war" has shown a tendency to slow down. Next, the domestic auto market is expected to return to the normal state mainly based on promotion, and the situation of a 20% price reduction "will not occur very often".
According to the May national passenger car market analysis report released by the Passenger Car Association Sub-committee yesterday, the national passenger car market retail sales in that month were 1.71 million, a decrease of 1.9% year-on-year and an increase of 11.4% month-on-month. Since the beginning of this year, the cumulative retail sales have been 8.073 million, an increase of 5.7% year-on-year.
In terms of retail data, the domestic retail penetration rate of new energy vehicles in May was 47.0%, an increase of 14 percentage points compared to the 33% penetration rate in the same period last year. In May domestic retail, the penetration rate of new energy vehicles in domestic brands was 71.2%; the penetration rate of new energy vehicles in luxury cars was 28.4%; while the penetration rate of new energy vehicles in mainstream joint-venture brands was only 7.5%.
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"The Passenger Car Association Sub-committee: The domestic retail penetration rate of new energy vehicles in May is 47%, with a year-on-year increase of 14 percentage points."