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China’s car market in 2024: growth, competition and transformation

The next few years will be pivotal in determining how the Chinese PV market positions itself in the global automotive industry landscape.

China’s car market in 2024: growth, competition and transformation

The Chinese Passenger Vehicle (PV) market has been on a steady growth trajectory in 2024, despite intensifying internal competition. After a brief dip in February due to the Chinese New Year holiday, which resulted in fewer selling days, sales rebounded in March and April, returning to a consistent growth pattern.

Domestic Sales and Production Growth

Domestic PV sales, excluding exports, saw a 5.4% year-on-year (YoY) increase in March and a 4.2% YoY growth in April. Cumulatively, from January to April 2024, PV sales reached 6.3 million units, reflecting a 5.5% YoY increase. The production side has shown even more robust growth, with a commendable 9.0% YoY increase, amassing 7.6 million units over the same period. This suggests that the production growth is outpacing sales volume, indicating potential market saturation or a buildup of inventory.

Export Contribution

Exports have played a significant role in the growth of production, with shipments in April 2024 reaching 424 thousand units, marking a substantial YoY increase of 36.9%. This represents 21% of total PV production, significantly higher than the 16% average share for the year 2023. The expanding share of exports in total production underscores the significant contribution of international sales to the industry’s growth. The burgeoning potential of overseas markets has encouraged several Chinese automotive manufacturers to contemplate establishing overseas to further reduce production costs.

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