Auto & Transportation

The recent import and export data released by the China Association of Automobile Manufacturers (CAAM) shows that in April, the production and sales of the automotive market achieved a significant year-on-year growth. Among them, the production and sales of new energy vehicles and automobile exports continue to maintain a good trend. At the same time, due to the irrational promotion trend since March, consumers have been holding onto currency and watching. Automobile consumption is still in the slow recovery process, and the recovery speed of the commercial vehicle industry is not as expected. As a result, production and sales in April decreased compared to March.

The China Automobile Association suggests that the current downward pressure on China's economy continues to increase, and the economic operation is mainly showing a restorative improvement. Demand is still insufficient, and the pressure on business operations is generally high. In addition, the international situation is complex and ever-changing, and the task of stabilizing the growth of the automotive industry remains heavy. Effective policies to stabilize and expand automotive consumption are needed to continue to boost, fully promote the release of automotive consumption potential, and promote the stable operation of the automotive industry.

The recovery of the commercial vehicle market is less than expected

According to data from China Automobile Association, the production and sales of automobiles in April reached 2.133 million and 2.159 million, respectively, a decrease of 17.5% and 11.9% month on month, and a year-on-year increase of 76.8% and 82.7%, respectively.

According to import and export data, from January to April, the cumulative production and sales of automobiles reached 8.355 million and 8.235 million, with year-on-year growth of 8.6% and 7.1%, respectively. Due to the basic stagnation of production and supply caused by the epidemic in April last year, automobile production and sales experienced a cliff like decline, with a relatively low base during the same period. The cumulative production and sales achieved a positive shift from negative. However, it should also be noted that the current downward pressure on China's economy continues to increase, and the economic operation is mainly showing a recovery improvement. Demand is still insufficient, and the pressure on enterprise operations is generally on the high side.

Import and export data shows a significant year-on-year growth in passenger car production and sales. In April, production and sales completed 1.778 million and 1.811 million vehicles respectively, a decrease of 17.3% and 10.2% month on month, and a year-on-year increase of 78.5% and 87.7%, respectively. Among the main types of passenger cars, compared to March, the production and sales of multi-functional passenger cars (MPVs) and crossover passenger cars have decreased, while sales of basic passenger cars (sedans) and sports multi-purpose passenger cars (SUVs) have both decreased; Compared to the same period last year, the production and sales of crossover passenger vehicles decreased and increased, while the production and sales of the other three major categories of vehicle models all achieved significant growth on a low base basis during the same period.

The recovery of the commercial vehicle market is less than expected. According to import and export data, in April, the production and sales of commercial vehicles completed 355000 and 348000 units respectively, a decrease of 18.4% and 19.9% compared to the previous month; The year-on-year growth rate was 68.8% and 60.5% respectively. Due to the sluggish freight market, a shortage of vehicles and goods, insufficient infrastructure construction rates, and high inventory, the commercial vehicle industry is still recovering from a bottoming out rebound, with a decline in production and sales compared to March. Among the main varieties of commercial vehicles, the production and sales of passenger cars and trucks have both decreased month on month and significantly increased year-on-year. From January to April, the production and sales of commercial vehicles completed 1.303 million and 1.286 million units respectively, an increase of 8.8% year-on-year. Among the main types of commercial vehicles, the production and sales of passenger cars and trucks have increased compared to the same period last year.

Rapid growth in production and sales of new energy vehicles

In April, new energy vehicles continued to perform well and their market share steadily increased.

The production and sales of 640000 and 636000 vehicles in that month respectively decreased by 5% and 2.5% month on month, with a year-on-year increase of 1.1 times and a market share of 29.5%. Among the main varieties of new energy vehicles, compared to March, the production and sales of pure electric vehicles have slightly decreased, the production of plug-in hybrid vehicles has slightly decreased and sales have slightly increased, while the production of fuel cell vehicles has slightly increased and sales have significantly decreased; Compared to the same period last year, the production and sales of the three major categories of automobiles showed rapid growth.

The cumulative production and sales of new energy vehicles from January to April were 2.291 million and 2.222 million, with a year-on-year increase of 42.8% and a market share of 27%. Among the main varieties of new energy vehicles, the production and sales of the three major categories of vehicles have shown varying degrees of growth compared to the same period last year.

According to import and export data, from January to April, the top ten automobile sales companies (groups) sold a total of 6.846 million vehicles, accounting for 83.1% of the total automobile sales. Among the top ten companies in terms of automobile sales, compared to the same period last year, BYD's sales growth rate was the most significant. BAIC Group and Chery Holdings also showed double-digit growth, while China FAW, Changan Automobile, and Geely Holdings saw slight growth, while other companies showed varying degrees of decline.

Among the new and old forces of car manufacturing, BYD continues to lead with an overwhelming advantage. On May 2nd, BYD disclosed its first quarter financial report for 2023 and its April production and sales report. According to the financial report, BYD's net profit growth in the first quarter exceeded 400%. In April, BYD's sales of new energy vehicles reached 210295 units, a year-on-year increase of 98.31%. The net profit for the first quarter was 4.13 billion yuan, a year-on-year increase of 410.89%. The quarterly profit level has exceeded its full year 2021 profit level.

According to statistics from the China Association of Automobile Manufacturers, the BYD Qin and Dolphin models ranked first and second on the sedan list in April, with a total of 42647 and 29961 units, respectively, increasing by 81.3% and 150.5% year-on-year.

According to data from the China Automobile Association, in the first quarter of this year, BYD's market share of new energy vehicles was about 35%, further stabilizing its leading position in the industry. In terms of brand layout, the company has formed a multi brand gradient layout constructed by BYD, Tengshi, and Yangwang. "Shanghai Securities latest research report analysis.

BAIC Group's sales in April were also very impressive. In terms of independent brands, Jihu Automobile has grown by over 50% year-on-year for three consecutive months, and the cumulative production and sales of Beiqi Foton in the commercial vehicle sector have exceeded the 11 million vehicle mark. In terms of joint venture brands, sales of Beijing Mercedes Benz and Fujian Mercedes Benz increased by 56% and 77% respectively year-on-year, while sales of Beijing Hyundai have been increasing for several consecutive months.

Among the new forces of car manufacturing, Ideal Automobile has become the "new big brother" with 25681 units delivered in April, a year-on-year increase of 516.3%. At this point, Ideal Automobile has exceeded 20000 units in monthly sales for the third time and has become the only car company among the new forces of car manufacturing that has sold over 20000 units per month. Nezha Motors, which jumped into the first camp in sales last year, sold 11080 units in April, a year-on-year increase of 26%. New power car companies such as NIO Automobile, Xiaopeng Automobile, and Zero Run Automobile failed to reach the "pass line" of 10000 vehicles in April, with sales of 6658 vehicles, 7079 vehicles, and 8726 vehicles, respectively.