Entering the "golden September and silver October", mainstream manufacturers have released their "flagship" products, with nearly 50 new car models coming to market in a cluster. Coupled with policy support such as the national-level vehicle scrapping and replacement subsidy, the auto market is bustling, and many automakers have set new sales records in September.

September and October of each year are traditionally peak sales seasons for China's auto market. Additionally, most automakers choose to introduce new products during this period to boost sales before the year-end rush. This year is no exception.

According to incomplete statistics by Auto Review reporters, at least 50 new or refreshed car models have been launched in September this year. Among them, on September 26 alone, 8 new car models were launched, making the auto market exceptionally lively. Meanwhile, many automakers have also chosen this opportunity to introduce "limited-time fixed-price" policies, offering discounts ranging from a few thousand to tens of thousands of yuan. Coupled with policy support such as the national-level vehicle scrapping and replacement subsidy, consumer enthusiasm for car purchases has never been higher. In September, many automakers set new sales records.

New energy vehicles shine brightly

Many automakers have set new sales records

According to sales data released by companies, in September this year, BYD sold 419,400 new vehicles, a year-on-year increase of 45.6%; Chery Group sold 244,500 new vehicles, a year-on-year increase of 28.6%; and Geely Auto sold 201,900 new vehicles, a year-on-year increase of approximately 21%.

In terms of new forces, in September this year, Li Auto delivered 57,500 new vehicles, a year-on-year increase of 48.9%; NIO delivered 33,800 new vehicles, a year-on-year increase of over 113%; XPeng delivered 21,352 new vehicles, a year-on-year increase of 39%; Thalys sold 37,400 new vehicles, a year-on-year increase of 265.09%, doubling its sales; additionally, in September this year, Xiaomi's new entrant, the SU7, also delivered over 10,000 units, achieving over 10,000 deliveries for four consecutive months. According to Lei Jun, its delivery schedule has been scheduled until after February next year.

It is worth noting that all the above-mentioned automakers, without exception, have new energy or hybrid vehicles as their main sales models. Among them, BYD's cumulative sales of new energy vehicles have surpassed 9 million units, and the 9 millionth new energy vehicle rolled off the production line on September 25. Based on the current delivery volume, it is expected to reach the milestone of the 10 millionth new energy vehicle rolling off the production line by the end of November or early December, setting an industry record.

According to the latest data released by the China Association of Automobile Manufacturers (hereinafter referred to as "CAAM"), in September this year, China's production and sales of new energy vehicles reached 1.307 million and 1.287 million units, respectively, representing year-on-year increases of 48.8% and 42.3%, both setting new historical highs. Another set of data shows that in September this year, the sales of new energy vehicles accounted for 45.8% of the total sales of new passenger vehicles in China, performing exceptionally well.

It is noteworthy that although the new energy vehicle market flourished in September, sales of traditional fuel vehicles declined significantly. According to CAAM data, in September this year, domestic sales of traditional fuel passenger vehicles fell to 940,000 units (excluding exports), a decrease of 402,000 units from the same period last year, representing a year-on-year decrease of 30%. In contrast, the domestic sales share of new energy vehicles has exceeded 50% for two consecutive months. From January to September, the cumulative domestic sales of new energy passenger vehicles reached 1.128 million units, a year-on-year increase of 47.6%, accounting for 54.6% of domestic passenger vehicle sales. Consumers' acceptance of new energy vehicles is continuously increasing.

As the auto market enters a crucial period of year-end sales rush, it is expected that domestic automakers will introduce more preferential policies to further stimulate consumption. Therefore, in the upcoming fourth quarter, China's new energy vehicle production and sales will further increase. Under this trend, China's cumulative new energy vehicle production and sales are highly likely to surpass the 12 million mark by the end of this year, exceeding CAAM's initial forecast of 11.5 million units.

Increased subsidies

Policy support shows results again

In the view of industry insiders, a significant portion of the record-high sales of domestic new energy vehicle models is attributed to policies such as vehicle scrapping and replacement subsidies.

Auto Review reporters learned that in August this year, the Ministry of Commerce and six other departments issued the "Notice on Further Improving the Vehicle Trade-in and Replacement Program". It clearly mentions that for individual consumers who scrap eligible old vehicles and purchase new ones, the subsidy standards have been increased from 10,000 yuan for purchasing new energy passenger vehicles and 7,000 yuan for purchasing fuel passenger vehicles to 20,000 yuan and 15,000 yuan, respectively.

In addition, besides the national level, local governments are also continuously increasing subsidies for vehicle scrapping and replacement. To date, multiple regions, including Beijing, Shanghai, Guangzhou, Shenzhen, and others, have successively issued relevant policy details.

For instance, on the eve of the National Day holiday, Chongqing planned to allocate an additional budget of 250 million yuan to continue promoting the vehicle replacement and upgrade market. Guangdong Province issued the "Implementation Plan for Utilizing Ultra-Long-Term Special Treasury Bonds to Boost Consumer Goods Trade-Ins and Upgrades", offering consumers up to 20,000 yuan in policy subsidies for scrapping old vehicles and purchasing new ones, and up to 16,000 yuan for replacement subsidies, doubling the trade-in subsidies compared to May's policy.

Compared to the scrapping and replacement subsidy standards in the first half of the year, this round of preferential policies is undoubtedly more attractive, and the real monetary subsidies have greatly stimulated consumers' desire to purchase vehicles. According to Xu Xingfeng, Director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, surveys in over ten provinces and cities have shown that over 80% of consumers are aware of the vehicle trade-in and upgrade policy, and over 70% are willing to actively participate.

As of 24:00 on October 7, the Ministry of Commerce's vehicle trade-in and upgrade platform had received over 1.27 million subsidy applications, driving new vehicle sales exceeding 160 billion yuan. Among them, the proportion of new energy vehicle subsidy applications exceeded 60%. Additionally, according to surveys, the proportion of new energy vehicles in the replacement of old and outdated vehicles in some regions exceeded 60%, particularly driving the strong growth of entry-level pure electric vehicles and the narrow-sense plug-in hybrid market.

In fact, as China's passenger vehicle market gradually enters an era of stock, coupled with the fierce "price war" in the industry, domestic auto manufacturers have been fully occupying market share this year. Since the enhanced implementation of the vehicle trade-in and upgrade policy, the boosting effect has been evident, effectively driving up vehicle sales. Automakers are actively releasing new vehicles, hoping to seize this consumption opportunity, achieve scale expansion, and promote high-quality transformation of their enterprises.

Regarding vehicle trade-ins and upgrades, Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, stated that considering the positive role the policy has played in stimulating vehicle consumption, to ensure the policy's stability, continuity, and predictability, and to effectively leverage its promotional effects, it is recommended to continue the relevant policies next year and announce the implementation details as soon as possible to stabilize market expectations.

Infrastructure is guaranteed

The new energy industry is thriving

On the other hand, the rapid development of China's basic charging infrastructure has also stimulated new energy vehicle consumption to a certain extent this year.

According to the latest data released by the China EV Charging Infrastructure Promotion Alliance, from January to September 2024, China's charging infrastructure increased by 2.837 million units, a year-on-year increase of 16.6%; as of September 2024, the cumulative number of charging infrastructure nationwide has reached 11.433 million units, a year-on-year increase of 49.6%. Among them, the public charging service radius in downtown areas of first-tier cities is comparable to that of gas stations, effectively supporting the development of the new energy vehicle industry.

Meanwhile, as the number of basic charging facilities continues to increase, the types of charging infrastructure for new energy vehicles in China are also becoming more diverse, and service models are increasingly diversified. Reporters have learned that a charging network with a planar layout in cities, a linear layout along highways, and a punctate layout in rural areas is gradually taking shape in China.

In recent years, multiple cities have proposed plans for high-power charging infrastructure, such as the construction of ultra-fast charging facilities in Shenzhen, Guangzhou, Hainan, and other regions, as well as the coverage of charging piles in townships and communities, all promoting the development of new energy vehicles. At the same time, "PV-ESS-Charging" integrated charging stations are also being implemented on a large scale. These charging stations, which integrate photovoltaic charging, energy storage, discharging, battery testing, and other functions, not only improve charging efficiency but also reduce electricity costs, and are expected to become the direction of future charging station development.

In addition, many charging stations now not only provide charging services but also offer self-service car washes, convenience stores, cafes, and even libraries to help charging car owners pass the time. These measures effectively alleviate the "charging anxiety" of new energy vehicle owners and turn it into "charging freedom" for more owners.

It is worth mentioning that in October this year, relevant officials from the Ministry of Industry and Information Technology also stated at a press conference that in the fourth quarter of this year, the Ministry will work with relevant departments to introduce a series of specific measures to boost consumption and expand domestic demand, helping enterprises expand their markets and unleash their vitality. These measures include promoting the trade-in and upgrade of consumer goods, intensifying the promotion of new energy vehicles, and promoting the expansion of charging infrastructure to rural areas, further driving the development of new energy vehicles. The new energy vehicle industry ecosystem is thriving.

Note: This article was first published in the "Industry Reports" section of the November 2024 issue of Auto Review magazine. Stay tuned.

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Article: Auto Review

Typesetting: Auto Review