2024 Automotive Production and Sales Growth in China
In 2024, the Chinese automotive industry demonstrated resilience and expansion, achieving remarkable growth in both production and sales. The total production for the year amounted to 31.282 million units, while total sales reached 31.436 million units. These figures reflect year-on-year increases of 3.7% and 4.5%, respectively, with the rates accelerating compared to the previous months of the year.
The robust performance was attributed to several factors, including government policies designed to stimulate the automotive market, such as large-scale equipment replacement and consumer goods trade-ins. These measures aimed to support the transition to more sustainable and technologically advanced vehicles, helping the industry meet consumer demand while ensuring stable economic development.
The Growth of New Energy Vehicles (NEVs)
A standout feature of the 2024 performance was the tremendous growth in New Energy Vehicles. With the strong push for cleaner and greener transportation solutions, production and sales of NEVs surged. In December alone, NEV production totaled 1.53 million units, and sales reached 1.596 million units, marking impressive year-on-year increases of 30.5% and 34%, respectively.
Over the entire year, NEV production and sales reached 12.888 million and 12.866 million units, representing year-on-year growth of 34.4% and 35.5%. A significant contributor to this growth was the increase in the production and sales of Plug-in Hybrid Vehicles, which saw dramatic year-on-year increases of 63.4% and 70.8%, respectively. Battery Electric Vehicles also contributed substantially to the overall growth in the NEV sector.
Despite the challenges, such as external market conditions and a slowdown in consumer confidence, the NEV segment played a critical role in boosting the industry’s overall performance.
Passenger and Commercial Vehicle Segments
When looking at specific vehicle categories, the passenger vehicle segment showed strong performance in December 2024. Production totaled 3.006 million units, and sales amounted to 3.12 million units, reflecting year-on-year increases of 10.8% and 11.7%, respectively. For the entire year, passenger vehicle production reached 27.477 million units, and sales stood at 27.563 million units, showing increases of 5.2% and 5.8%.
Conversely, the commercial vehicle segment faced a mixed year. While December saw slight growth in sales (up 1.2%), the total production of commercial vehicles declined by 1.5% compared to the previous year. On a year-to-date basis, the commercial vehicle segment experienced a decrease in both production and sales, with production down by 5.8% and sales by 3.9%.
Vehicle Exports and International Market Performance
China’s automotive export performance also saw growth in 2024. Vehicle exports for the year totaled 5.859 million units, a significant year-on-year increase of 19.3%. Among these, passenger vehicles accounted for the largest share of exports, totaling 4.955 million units, a 19.7% increase compared to 2023. Notably, exports of New Energy Vehicles also saw significant growth, up by 6.7% year-on-year, reaching a total of 1.284 million units.
In December 2024 alone, vehicle exports totaled 504,000 units, with passenger vehicle exports at 426,000 units and NEV exports at 134,000 units. The NEV export market grew by 19.8% year-on-year, highlighting the increasing demand for Chinese-made electric vehicles abroad.
Challenges Facing the Industry
Despite the growth, the automotive industry in China is not without its challenges. The sector is still grappling with several adverse factors, such as external economic pressures, intensifying competition within the industry, and a lack of consumer confidence, which has affected domestic vehicle consumption. These issues are compounded by shrinking profit margins, which could pose challenges to achieving long-term sustainable growth.
The Chinese government, however, has shown commitment to supporting the automotive sector with policies aimed at boosting production and sales. With initiatives to increase market vitality and support economic stability, the outlook for the automotive industry remains positive, though challenges persist.
Future Outlook for the Industry
Looking ahead to 2025, the China Association of Automobile Manufacturers expects a continuation of the stable growth observed in 2024. Government measures, such as the extension of large-scale equipment replacement and consumer goods trade-in policies, are expected to further stimulate the market and provide support for continued expansion in vehicle production and sales.
In particular, the NEV segment is likely to remain a key focus, with significant investments in research and development, infrastructure expansion, and the promotion of eco-friendly vehicles, ensuring that China remains a leader in the global automotive market.
