According to the China Association of Automobile Manufacturers, domestic sales of domestically produced automobiles (including joint venture brands and wholly-owned brands) reached 14.992 million units from January to August this year, a year-on-year decrease of 1.8%. Among them, passenger cars, which account for 86.6% of total automobile sales, sold 12.981 million units domestically from January to August, a year-on-year decrease of 1.6%. Meanwhile, the major automobile markets globally are also not so prosperous.

China, the United States, and Europe are the three largest automobile markets globally. In 2023, domestic automobile sales in China reached 25.184 million units (excluding imported automobiles), light vehicle sales in the United States reached 15.6 million units, and automobile sales in Europe reached 12.85 million units. Automobile sales in China, the United States, and Europe accounted for more than 60% of the global sales of 89 million units.

Since the second half of this year, sales in these three major automobile markets have declined to varying degrees.

The United States is the second-largest automobile market globally after China. In the first half of this year, automobile sales in the United States increased by 2.2% year-on-year. However, the US automobile market has been weak since July. Relevant statistics show that due to high auto loan interest rates and rising car prices, consumer demand has been suppressed. As a result, automobile sales in the United States fell short of expectations in July and August. Some analysts believe that the US automobile market will remain sluggish in the second half of this year.

Europe is the third-largest automobile market globally. Affected by factors such as the cancellation of subsidies, demand for electric vehicles in Europe has continued to weaken. In July, new car registrations in Europe increased by only 0.4% year-on-year to 1.03 million units. The situation in August was even worse. Germany, a major hub of the European automobile industry, saw a 27.8% decline in automobile sales in August, with sales of pure electric vehicles plummeting by 68.8%. In the French automobile market in August, new car sales fell by 24.3% year-on-year. In the first eight months of this year, the market share of electric vehicles in France was 16.8%, which was higher than the overall EU level but lower than 18% at the end of March. This indicates that the proportion of electric vehicles in France has been declining month by month since the second quarter. In Italy, the third-largest automobile market in Europe, new car sales fell by 13.37% year-on-year in August.

As the most important component of the European automobile market, the Western European automobile market has been on a downward trend in recent months. Political and economic issues continue to undermine consumer confidence and the short-term market development prospects. Higher auto loan interest rates and car prices have had a negative impact on sales and are unlikely to change in the short term. The Western European pure electric vehicle market is still struggling, leading to calls from senior executives of European automobile companies for government incentives to boost electric vehicle sales.

Figures show that the proportion of electric vehicles in total European automobile sales in the first seven months of this year fell from 14.5% in the same period last year to 13.6%. Even Tesla, the leader in electric vehicles, saw its sales in Europe decline by 12% in the first seven months of this year. Meanwhile, sales of gasoline-powered vehicles fell by 8.4%, diesel-powered vehicles fell by 11%, and the traditional gasoline-powered vehicle market is undergoing transformational pressure. Given the current severe situation, some analysts believe that the European automobile industry is experiencing an avalanche.

Affected by the sluggish automobile market, multinational automobile companies in Europe are also in trouble. Volkswagen Group, the second-largest global automobile manufacturer by sales, recently announced the closure of an automobile manufacturing plant in Germany and attempted to terminate employment security agreements with trade unions. This is the first time Volkswagen has taken such a measure since its establishment in 1937. Stellantis, Europe's second-largest automobile manufacturer, reported net revenue of 85.02 billion euros in the first half of 2024, a year-on-year decrease of 14%; net profit was 5.65 billion euros, a year-on-year decrease of 48%, significantly lower than market expectations.

The global automobile industry is undergoing a once-in-a-century transformation, and the relatively sluggish global economy after the pandemic has exacerbated the difficulties faced by the industry.

Some analysts believe that the decline in automobile sales is due to weaker-than-expected economic recovery, which has constrained consumer confidence in purchasing automobiles. On the other hand, the slow transition to pure electric vehicles in Europe and the United States has also hindered the growth of automobile sales.

While China leads the way in new energy vehicles, it is important to note that the domestic automobile market is not prosperous and is also facing the same pressures of weak consumer sentiment as the automobile markets in Europe and the United States.

In the past few years, it was precisely because of the rapid growth in China's automobile exports that the embarrassing situation of declining domestic sales was offset. Overall, the main markets for China's automobile exports are Russia, South America, the Middle East, Southeast Asia, and other countries. Exports to Europe and the United States accounted for a very low percentage in 2023. Under the current circumstances of sluggish automobile markets and trade protection measures in Europe and the United States, it is even more difficult for Chinese automobiles to enter these markets.

For Chinese automobile manufacturers, a deep understanding of the global automobile market trends is crucial for formulating an overseas strategy. (End)