Chinese Automotive Industry Shows Strong Growth and Resilience

The Chinese automotive industry has recently reported remarkable figures, with production and sales exceeding 15 million units for the first time, marking a year-on-year growth of 12.5% and 11.4% respectively. The production and sales of new energy vehicles (NEVs) reached 6.968 million and 6.937 million units, showing an impressive growth of 41.4% and 40.3%. Furthermore, automotive exports totaled 3.083 million units, a 10.4% increase, while NEV exports surged to 1.06 million units, a 75.2% rise compared to last year. This data, released by the China Association of Automobile Manufacturers (CAAM), highlights the strong resilience and momentum of the Chinese automotive sector. In response to chaotic competition practices, a series of regulatory measures have been implemented to curb disorderly price wars, extended payment terms, and false advertising. 17 automotive companies have committed to maintaining payment periods of no more than 60 days, enhancing product consistency checks, and enforcing anti-competitive practices. The domestic automotive market has significantly improved, supported by policies aimed at encouraging vehicle replacements. This includes a notification issued by the Ministry of Commerce in January, which expanded the scope of support for vehicle scrappage and replacement, improving subsidy approval processes and standards. In the first half of the year, domestic sales reached 12.57 million units, up 11.7%, with passenger vehicle sales at 10.95 million, a 13.6% increase. The CAAM emphasized that the automotive market has maintained a positive trend, achieving double-digit growth in several indicators, making it one of the most stable first halves in recent years. Furthermore, the industry has actively engaged in self-regulation, calling for a stop to misleading sales data and excessive marketing of driving assistance technologies. As for joint ventures, companies like SAIC-GM are accelerating their local strategies with significant progress in indigenous R&D. GAC Toyota’s first pure electric SUV has seen high demand, with nearly 30,000 orders in just three months. On the international front, Renault's electric vehicle division has signed an agreement to establish a new energy vehicle industry fund in Hangzhou, aiming to connect with leading players in the Chinese tech ecosystem. Chinese brands are increasingly integrating into the global market, with NEV exports reaching 1.06 million units in the first half of the year, reflecting a growing international presence. Overall, the Chinese automotive industry is experiencing a transformative phase, driving innovation and enhancing its competitiveness on a global scale.