In the first ten months of 2024, China's automotive industry demonstrated robust growth, with production and sales of vehicles reaching 24.466 million and 24.624 million units, respectively. According to the China Association of Automobile Manufacturers, these figures represent increases of 1.9% and 2.7% compared to the same period last year. The growth rates have not only remained stable but have also accelerated slightly, with a 0.3 percentage point increase over the January-September period.
Focusing on October alone, China's automotive production hit 2.996 million units, while sales reached 3.053 million units. These numbers mark month-on-month increases of 7.2% and 8.7%, respectively. On a year-on-year basis, production rose by 3.6%, and sales climbed by 7.0%. This upward trend is attributed to a combination of favorable government policies and the traditional year-end push from automakers and dealers, which are expected to continue bolstering the market in the final months of the year.
A significant driver of this growth has been the surge in new energy vehicles. From January to October, NEV production and sales soared to 9.779 million and 9.75 million units, respectively, marking impressive year-on-year increases of 33% and 33.9%. This surge underscores the growing consumer preference for environmentally friendly vehicles and the successful implementation of supportive policies by the Chinese government.
In October, NEV production reached 1.463 million units, while sales totaled 1.43 million units. These figures represent substantial year-on-year increases of 48.0% and 49.6%, respectively, and month-on-month growth of 11.9% and 11.1%. Notably, NEVs accounted for 46.8% of total vehicle sales in October, highlighting their significant role in the overall market dynamics.
The remarkable performance of NEVs is a testament to China's strategic focus on green technology and sustainable development. The increasing share of NEVs in total vehicle sales, which stood at 39.6% for the January-October period, reflects a transformative shift in consumer preferences and industry priorities. This shift is expected to continue, driven by technological advancements and heightened environmental awareness.
The CAAM remains optimistic about the future of China's automotive market, anticipating sustained growth as the cumulative effects of favorable policies continue to unfold. The strong performance of NEVs, in particular, is likely to play a crucial role in maintaining the market's upward trajectory, supported by ongoing innovations and investments in green technology.
As the year draws to a close, the Chinese automotive industry is poised for a strong finish, with NEVs leading the charge. The combination of policy support, consumer demand, and industry momentum suggests a promising outlook for the sector, reinforcing China's position as a global leader in automotive production and innovation.
