AutoBeta(AutoBeta.net)05/11 Report--

According to data released by the Federation of passengers on May 10, retail sales in the passenger car market in April 2024 were 1.532 million, down 5.7 per cent from a year earlier and 9.4 per cent from a month earlier, while cumulative retail sales from January to April in 2024 were 6.364 million, up 8.0 per cent from a year earlier.

The HKIFA explained that the cyclical month-on-month decline in retail volume was due to factors such as unstable car prices leading to a strong wait-and-see atmosphere among consumers. In addition, the price war of new energy and new cars brings a certain increment, but the sustainability is not strong, resulting in most conventional fuel models have no room for sustained price reduction, thus restraining the room for sales improvement.

According to the ranking of retail sales, the top 10 car companies in April were BYD, FAW-Volkswagen, Geely, Changan, Chery, SAIC-Volkswagen, Guangzhou Auto Toyota, Dongfeng Nissan, FAW Toyota and brilliance BMW. Judging from the overall list, of the 10 car companies on the list in April, only BYD, Geely and Chery achieved year-on-year growth, with the highest increase for Chery, up 59.8% from the same period last year. The other seven car companies all showed a year-on-year decline to varying degrees, of which Guangzhou Automobile Toyota, which had the highest decline, fell 32.1% from the same period last year.

As the only fully electric brand, BYD remains the top seller of passenger cars in China, leading a group of independent joint venture brands with sales of 254000 vehicles in April, up 31.1% from a year earlier, but lagging behind Chery. In April, Chery sold 79000 cars, up 59.8% from a year earlier, ranking fifth on the list.

In addition to BYD and Chery, Geely and Changan ranked third and fourth in the list, with sales of 116000 and 83000 respectively, but Changan showed a marked decline, down 17.9 per cent from the same period last year.

Among the joint venture brands, German brands FAW-Volkswagen and SAIC-Volkswagen ranked second and sixth respectively, but both showed double-digit declines. Among them, FAW-Volkswagen fell 15.6 per cent year-on-year to 119000 vehicles, while SAIC-Volkswagen fell 21.7 per cent to 78000 vehicles.

It is worth mentioning that the first-tier luxury brand brilliance BMW re-entered the top 10 in April, with sales of 49000 vehicles in April, down 7.9% from a year earlier. For comparison, brilliance BMW ranked 10th and ninth respectively in January and February, with sales of 69000 and 40000, respectively, before falling out of the top 10 in March.

In the camp of Japanese car companies, Guangzhou Auto Toyota, Dongfeng Nissan and FAW Toyota a total of three Japanese manufacturers entered the top 10 in April, ranking seventh to ninth respectively, but all fell from a year earlier. Among them, Guangzhou Auto Toyota fell 32.1% year-on-year to 52000 vehicles; Dongfeng Nissan fell 9.6% year-on-year to 52000 vehicles; FAW Toyota dropped 31.3% to 49000 vehicles. Guangzhou Auto Honda and Dongfeng Honda, two joint ventures in Honda China, did not make the top 10. Honda China sold 73831 terminal cars in April, down 22.18% from a year earlier, according to official Honda data. Among them, Guangzhou Auto Honda was 33510, down 44.61% from the same period last year; Dongfeng Honda was 40321, down 17.28% from the same period last year.

The above is the list of the top 10 domestic automakers. Taken together, retail sales declined in April for both German and Japanese brands. Today, the penetration rate of new energy vehicles has exceeded 40%, and the fight in the follow-up market will only be more intense, especially as 2024 is designated as the key year for new energy vehicle companies to gain a foothold. As the largest new energy vehicle market in the world, for German, Japanese and American brands, China has to pay attention to the changes in the car market to help it regain its vitality. Of course, Automotive Industry concern believes that the "frustration" of German-Japanese joint ventures in China has more to do with its lack of prominence in the new energy sector. In April, for example, the domestic retail penetration rate of new energy vehicles was 43.7%, an increase of 11.7% over the same period last year, of which the penetration rate of new energy vehicles in independent brands was 66.8%, while that of new energy vehicles in mainstream joint venture brands was only 7.5%. Under the background that new energy vehicles are gradually becoming the mainstream of the car market, whether German brands or Japanese brands, if they want to stay in the Chinese market, they must do something in the electric vehicle market as soon as possible, the longer this action drags on, it will only be more difficult for joint venture brands to regain their lead.

Retail sales of mainstream joint venture brands were 450000 vehicles in April, down 26 per cent from a year earlier and 9 per cent month-on-month, according to the Federation. Among them, the retail share of German brands was 19%, down 2.2% from the same period last year; the retail share of Japanese brands was 15.2%, down 3.6% from the same period last year; and the retail share of American brands was 5.9%, down 2.6% from the same period last year.

Compared with the German-Japanese joint venture brand, the market share of independent brand is rising all the way. In April, self-brand retail sales were 880000 vehicles, up 11% from the same period last year, down 5% from the previous month, and the market share was 57.4%, up 9% from the same period last year. With the significant increase in the brand share of traditional car companies such as BYD, Chery, Geely and Changan Automobile, the market share of independent brands reached 56% in the first four months of this year, up 6.3% from the same period last year.

Generally speaking, independent brands, including BYD, make use of the new energy track to achieve corner overtaking and gradually erode the joint venture brand market. it has become a heavy pressure that joint venture car enterprises can not ignore. "how to maintain competitiveness in the new energy vehicle market" is an urgent problem for joint venture automobile enterprises. When the consumption situation of the car market changes, the joint venture brand is still unable to make substantial innovation, so it may be only a matter of time before it is abandoned by consumers.

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