Benefiting from the continued popularity of summer travel and the stimulation of consumption policies, the retail sales of the automobile market in August reached the highest level in history for the same period.
On September 8th, the China Association of Automobile Manufacturers (CAAM) released the analysis report on the national passenger vehicle market in August. In August 2023, the retail sales of passenger vehicles reached 1.92 million units, a year-on-year increase of 2.5% and a month-on-month increase of 8.6%. The cumulative retail sales for this year reached 13.22 million units, a year-on-year increase of 2.0%.
The retail sales of new energy vehicles in August reached 716,000 units, a year-on-year increase of 34.5% and a month-on-month increase of 11.8%. The cumulative retail sales for this year reached 4.441 million units, a year-on-year increase of 36.0%.
CAAM pointed out that the retail sales of the automobile market in August reached the highest level in history for the same period, with a 2% increase compared to the retail peak in August 2017. In August, the momentum of consumption promotion policies was strong, and promotions remained at a high level. In addition, a large number of new products and low-priced models were launched before and after the recent Chengdu Auto Show, which led to a release of consumer demand.
Affected by a combination of factors such as the early Chinese New Year this year, repeated failures in the introduction of stimulus policies, a surge in sales promotion of China VI emission standard vehicles, a six-month delay in the launch of China VI emission standard vehicles, and a gradual increase in the base from last year, the cumulative retail sales from January to August reached 13.22 million units, achieving a year-on-year growth of 2.0%.
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<h2>Penetration Rate of New Energy Vehicles Reaches 37.3%</h2>
The domestic penetration rate of new energy vehicles in August reached 37.3%, an increase of 9 percentage points compared to the same period last year (28.4%). In August, the penetration rate of new energy vehicles in domestic independent brands was 60.2%; in luxury brands, it was 30.0%; while in mainstream joint venture brands, it was only 5.2%.
In terms of monthly domestic retail market share, in August, the retail market share of new energy vehicles in mainstream domestic independent brands was 70%, a decrease of 0.2 percentage points compared to the same period last year; the market share of new energy vehicles in joint venture brands was 5.2%, a decrease of 0.8 percentage points compared to the same period last year; the market share of new energy vehicles in emerging brands was 13.8%, a decrease of 1.2 percentage points compared to the same period last year; and the market share of Tesla was 9%, an increase of 3.0 percentage points compared to the same period last year.
CAAM pointed out that in August, the market share of emerging brands was 13.8%, a decrease of 1.2 percentage points compared to the same period last year; overall, companies such as Li Auto and NIO still showed strong sales performance. Among mainstream joint venture brands, FAW-Volkswagen and SAIC-Volkswagen are leading the way, with wholesale sales of new energy vehicles reaching 20,500 units, accounting for 60% of the market share of mainstream joint venture pure electric vehicles. Volkswagen's firm strategy of electrification transformation is beginning to show results. Other joint venture and luxury brands still need to make efforts.
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<h2>Continued Strong Growth in Automobile Exports</h2>
From January to August, the export of passenger vehicles reached 2.32 million units, a year-on-year increase of 72%. In August, new energy vehicles accounted for 24% of the total exports. With the improvement of export capacity, the export of domestic brands reached 284,000 units in August, a year-on-year increase of 58% and a month-on-month increase of 14%. The export of joint ventures and luxury brands was 46,000 units, a year-on-year decrease of 39%.
The China Association of Automobile Manufacturers pointed out that in August, the export of new energy passenger vehicles reached 78,000 units, a year-on-year increase of 1.7% and a month-on-month decrease of 11.8%. They accounted for 24% of the total passenger vehicle exports. Among them, pure electric vehicles accounted for 93.3% of the new energy vehicle exports, and A0+A00 level pure electric vehicles accounted for 50% of the new energy vehicle exports.
With the scale advantage and market expansion demand of China's new energy vehicles, an increasing number of Chinese new energy product brands are gaining recognition overseas. With the continuous improvement of service networks, the export market for new energy vehicles remains promising.
According to the monitoring of retail data in overseas markets for independently exported vehicles, A0-level electric vehicles accounted for 60%, making them the absolute main force in exports. Domestic brands such as SAIC have performed well in Europe, while BYD is gradually leading in Southeast Asia. In addition to the impressive performance of traditional export-oriented automakers, recent emerging players have also started exporting, and data from overseas markets is beginning to emerge.
<h2>Policy Support Needed for Peak and Off-Peak Charging Prices</h2>
Looking ahead, the China Association of Automobile Manufacturers pointed out that &#34;September and October&#34; are good months for the auto market, and this year's &#34;September&#34; effect is more balanced. September has 20 working days, one day less than last year, and the Mid-Autumn Festival falls on September 29th, with an 8-day holiday combining the Mid-Autumn Festival and National Day. The enthusiasm for driving on highways during the National Day holiday is expected to boost private car purchases in September.
In addition, with the successful holding of the Chengdu Auto Show, various brands are accelerating the launch of new products in the autumn, attracting consumer attention and creating a good market consumption rhythm. Some automakers have proactively adjusted their product pricing systems and marketing strategies to continue driving consumption. With the continuous implementation of consumption promotion policies in various regions and the vigorous development of various auto shows and offline activities, the promotion of new energy vehicles in rural areas has become a good platform for sales, stabilizing the effect of consumption stimulation.
The probability of success for new car models launched in autumn is higher as the overall market sales volume rebounds, and the incremental effect of new products in the auto market is relatively strong. The strong supply of products will have a positive impact on sales. Major cities in various regions have also begun to organize various auto shows of different sizes to promote the &#34;September and October&#34; sales season, which is conducive to stimulating consumer demand and further driving production and sales growth.
Regarding the recent online reports on the adjustment of charging prices in certain regions, and even discussions about charging prices rising more sharply than fuel prices, the China Association of Automobile Manufacturers pointed out that such information may shake the confidence of potential consumers who are considering purchasing electric vehicles.
Given the current scale of new energy vehicles, it is still necessary for charging station companies to continue to increase investment and construction, ensuring worry-free charging and effectively addressing pain points and bottlenecks for potential consumers purchasing new energy vehicles.
The China Association of Automobile Manufacturers (CAAM) believes that the peak and off-peak electricity prices for charging need policy support. In order to promote the development of electric vehicles, it is preferable to prioritize convenience for residents, including the charging of electric vehicles, rather than using excessively high electricity prices to regulate and change consumers' charging habits. It is important to avoid causing panic among consumers regarding the electricity prices for charging electric vehicles, which could in turn affect the normal development of the new energy vehicle industry.

TSLA

8 月份新能源汽车市场份额为 13.8%，较去年同期下降了 1.2 个百分点；而特斯拉的市场份额为 9%，同比增长了 3.0 个百分点。

Wallstreetcn

Tesla

CPCA: In August, retail sales of passenger vehicles reached the highest level in history, with a YoY growth of 34.5% in the sales of new energy vehicles.