China's June Auto Production and Sales Show Strong Growth

According to data released by the China Association of Automobile Manufacturers on July 10, China's auto production in June reached 2.794 million units, with sales at 2.904 million units, marking a month-on-month increase of 5.5% and 8.1%, respectively, and a year-on-year increase of 11.4% and 13.8%. New energy vehicles (NEVs) performed exceptionally well in June, with production at 1.268 million units and sales at 1.329 million units, reflecting year-on-year growth of 26.4% and 26.7%, resulting in a penetration rate of 45.8%. In the first half of the year, total auto production stood at 15.621 million units, and sales were 15.653 million units, representing year-on-year growth of 12.5% and 11.4%, respectively. Among these, the cumulative sales of new energy commercial vehicles reached 354,000 units, with a penetration rate of 21.8%. The commercial vehicle sector saw consistent growth, with June sales reaching 369,000 units. Data from the CAAM indicates that commercial vehicle production and sales reached 354,000 and 369,000 units in June, respectively, showing month-on-month growth of 5.3% and 10.3%, and year-on-year growth of 7.1% and 9.5%. Specifically, sales of natural gas commercial vehicles were 17,000 units, down 5.6% month-on-month and down 22% year-on-year. Truck production and sales reached 304,000 and 316,000 units, respectively, with month-on-month increases of 4% and 8.5%, and year-on-year increases of 4.7% and 7.5%. Overall, from January to June, domestic sales of commercial vehicles reached 1.62 million units, a slight year-on-year increase of 0.3%. Of these, truck sales accounted for 1.426 million units, down 0.6% year-on-year, while bus sales reached 194,000 units, up 7.9% year-on-year. In terms of market flow, commercial vehicle domestic sales in June were 279,000 units, reflecting a month-on-month increase of 10.9% and a year-on-year increase of 9.1%; exports of commercial vehicles reached 90,000 units, up 8.3% month-on-month and up 10.6% year-on-year. Among these, truck exports were 76,000 units, up 7% month-on-month and up 8.3% year-on-year; bus exports were 14,000 units, up 16.1% month-on-month and up 25.2% year-on-year. From January to June, domestic sales of commercial vehicles were 1.62 million units, up 0.3% year-on-year, with exports at 501,000 units, up 10.5% year-on-year. Truck exports amounted to 430,000 units, up 10.5% year-on-year, and bus exports were 71,000 units, up 10.8% year-on-year. The data shows that in June, domestic sales of NEVs reached 1.124 million units, a month-on-month increase of 2.7% and a year-on-year increase of 16.7%. Of these, domestic sales of new energy commercial vehicles were 70,000 units, reflecting a month-on-month increase of 8.2% and a year-on-year increase of 58.6%. The penetration rate of new energy commercial vehicles in the domestic market stands at 25.2%. In the overseas market, exports of new energy commercial vehicles reached 8,000 units, up 2.9% month-on-month and up 2.2 times year-on-year. From January to June, exports of new energy commercial vehicles totaled 49,000 units, a year-on-year increase of 2.3 times. The domestic sales of new energy vehicles from January to June reached 5.878 million units, representing a year-on-year growth of 35.5%. Within this, the domestic sales of new energy commercial vehicles were 354,000 units, marking a year-on-year increase of 55.9%. The penetration rate of new energy commercial vehicles is 21.8%. The export market for new energy commercial vehicles shows significant growth vitality, and with continued policy support, these vehicles are steadily penetrating the market. With opportunities arising from trade-in programs and similar initiatives, commercial vehicle companies are expected to achieve breakthrough development by focusing on new energy product R&D and optimizing market layouts both domestically and internationally. In conclusion, the overall auto market in June exhibited a strong growth trend, with the commercial vehicle sector showing performance across both trucks and buses. Although the development of new energy commercial vehicles faces challenges, the prospects remain broad. Looking ahead to the second half of the year, policies will continue to be implemented in an orderly manner, while incentives such as tax exemptions for new energy vehicles may gradually diminish. Coupled with a steady supply of new products from companies, this is likely to stimulate growth in auto consumption. However, it is essential to acknowledge the increasing complexity, severity, and uncertainty of the current external environment, alongside the need for close attention to the suspension of trade-in subsidies in certain regions, as well as the continuing fierce competition and pressure on overall profitability, posing challenges to the stable operation of the industry.