In the first half of April, the market penetration rate of new energy vehicles exceeded 50%

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China Research Network

The latest data from the China Passenger Car Association does show that in the first half of April 2024, the wholesale and retail penetration rates of the new energy passenger vehicle market both exceeded 50%, which marks that new energy vehicles have achieved a reversal of fuel vehicles and is a historic moment in China's auto market. This achievement was achieved 11 years ahead of the original 2035 national planning target, demonstrating the strong development momentum of China's new energy vehicle industry.

Specifically, from April 1 to 14, the total retail sales of the national passenger car market were 516,000 units, a year-on-year decrease of 11%. However, the new energy market showed a very different trend, with retail sales reaching 260,000 units, up 32% year-on-year. This means that the retail sales of new energy passenger vehicles in the country accounted for 50.39%, and the wholesale volume of new energy passenger vehicles also accounted for 50.19%. This data clearly shows that the penetration rate of new energy passenger vehicles in the market has exceeded half, showing its strong market influence and growth potential.

In addition, from a brand perspective, Chinese new energy vehicle brands such as BYD have emerged in the global market, which has also promoted the overall development of China's new energy vehicle market to a certain extent. Through technological innovation and marketing strategies, these brands have successfully attracted a large number of consumers and further increased the market share of new energy vehicles.

Looking ahead, it is expected that the new energy vehicle market will continue to prosper, and the penetration rate is expected to further increase. With the advancement of technology and the improvement of consumer acceptance, new energy vehicles will occupy a more important position in the future automobile market. At the same time, the government and enterprises will continue to increase investment to promote the healthy development of the new energy vehicle industry.

To sum up, China's new energy vehicle market has achieved a reversal of fuel vehicles, and shows a strong momentum of development. In the future, we have reason to believe that new energy vehicles will play a more important role in promoting the transformation and upgrading of China's automobile industry and achieving green development.

According to the statistical analysis published by the Puhua Industry Research Institute of the China Research Institute:

A few days ago, the China Association of Automobile Manufacturers released the latest data showing that in the first quarter, the total production and sales of automobiles were 6.606 million and 6.72 million, an increase of 6.4% and 10.6% year-on-year respectively, achieving a "good start" in the first quarter and a new high since 2019.

In the first quarter, the competition in the new energy vehicle market, especially among the new car manufacturers, became more and more intense. Looking at the sales figures, some brands are particularly outstanding.

AITO's sales volume in the first quarter achieved significant growth, with a total of 85,800 new vehicles sold, a year-on-year increase of more than 600%, becoming the brand with the fastest year-on-year growth among all new car manufacturers. This achievement also makes AITO surpass the ideal. According to the data, the gap between the sales volume of Ideal and AITO in the first quarter was more than 5,000 units.

In addition, GAC Aion's sales in March reached about 32,500 units, regaining the monthly sales championship of new car manufacturers. Some brands have been relatively weak. For example, NIO sold about 30,000 units in the first quarter, down 3.2% year-on-year; Although Xpeng's sales in the first quarter increased by 20% year-on-year, it fell in the ranking; Nezha Automobile's sales in the first quarter were about 24,400 units, down 6.7% year-on-year.

While the auto market ushered in a "good start" in the first quarter, the "price war" in the domestic auto market also intensified. Recently, a number of car companies have announced price cuts. For example, NIO announced the launch of a 1 billion yuan fuel car replacement subsidy, giving a subsidy of 10,000 yuan to fuel car replacement users. ZEEKR launched the 007 rear-wheel drive enhanced version, with a price of 209,900 yuan, which is 20,000 yuan lower than the starting price of the current model on sale. AITO announced that the price of the new M7 entry-level version of the M7 Plus five-seater rear-wheel drive model will be adjusted to 229,800 yuan, a reduction of 20,000 yuan. Xpeng Motors announced that the 2024 Xpeng G9 will enjoy a smart driving subsidy for car purchases, and the current car will be reduced by up to 20,000 yuan for a limited time, and the price will drop to 243,900 yuan. Tesla announced that the price of the Model 3/Y/S/X series will be reduced by 14,000 yuan in Chinese mainland, of which the starting price of the Model 3 will be reduced to 231,900 yuan, and the starting price of the Model Y will be reduced to 249,900 yuan.

Car companies are competing for prices, and the profit margin of the auto industry is gradually declining. Data from the National Bureau of Statistics shows that the profit margin of the automotive industry in the first two months of this year was 4.3%, while the profit margin of the overall industrial enterprise was 4.7%, and the automotive industry is still low.

Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, believes that if car companies take price as the most important means of competition, it will be difficult for the industry to develop healthily. The automotive industry should compete through product quality, performance, and technology, and cannot compete by simply lowering prices.

For the production, sales and market development of new energy vehicles in the mainland, we can make a detailed analysis from the following aspects: First, from the perspective of production and sales, the new energy vehicle industry in the mainland has shown a strong growth momentum in recent years. According to data from the China Association of Automobile Manufacturers, in March 2024, the production and sales of new energy vehicles in mainland China reached a very high level, with significant year-on-year growth. This growth trend is not only reflected in the monthly data, but also from the quarterly and even annual data, the production and sales of new energy vehicles have also maintained a continuous growth trend. This growth is due to a number of factors, including policy support, technological progress, and increased consumer acceptance.

At the policy level, the mainland government has been vigorously promoting the development of new energy vehicles, and has encouraged consumers to buy new energy vehicles by introducing a series of preferential policies, such as car purchase subsidies and exemption from purchase tax. At the same time, the government has also increased investment in the new energy vehicle industry to promote the improvement of the industrial chain and the improvement of innovation capabilities.

At the technical level, with the continuous progress of battery technology and the increasing improvement of charging facilities, the mileage of new energy vehicles has been greatly improved, and the charging time has also been shortened, which makes the use of new energy vehicles more convenient. In addition, new energy vehicles have also made significant progress in intelligence and networking, providing consumers with a richer driving experience.

From the perspective of consumer acceptance, with the improvement of environmental awareness and the popularization of new energy vehicles, more and more consumers have begun to recognize the advantages of new energy vehicles and are willing to choose to buy. This trend is especially evident among younger consumers, who are more environmentally friendly and fashionable, and are more receptive to new energy vehicles.

Secondly, from the perspective of market development, the mainland new energy vehicle market presents the following characteristics:

First, the market scale continues to expand. With the continuous growth of production and sales, the scale of the new energy vehicle market in mainland China is also expanding. It is expected that this market will continue to grow rapidly in the next few years.

Second, the market competition is becoming increasingly fierce. With the continuous expansion of the new energy vehicle market, more and more companies have begun to enter this field, and the market competition is becoming increasingly fierce. This not only helps to promote the advancement of new energy vehicle technology and reduce costs, but also provides consumers with more choices.

Third, the market structure has been continuously optimized. With the development of the market, the structure of the new energy vehicle market is also constantly optimized. Both the high-end market and the low-end market are developing rapidly to meet the needs of different consumers.

Fourth, the degree of internationalization is constantly improving. Mainland new energy vehicle companies have begun to actively participate in international market competition and cooperate with internationally renowned enterprises to promote the global sharing and development of new energy vehicle technology.

To sum up, the production, sales and market development of new energy vehicles in mainland China have shown a strong growth trend and good development prospects. In the future, with the combined action of policy, technology, market and other factors, the new energy vehicle industry in mainland China is expected to achieve more rapid development.

The future trend of new energy vehicles can be summarized as follows:

Technological innovation and breakthroughs: With the progress of science and technology, the battery technology, motor technology, and charging technology of new energy vehicles will be further improved and developed. For example, the development and application of new batteries will improve the energy density and charging speed of batteries, and extend the range. Intelligence and Internetization will also become an important direction for the development of new energy vehicles, including intelligent driving, intelligent charging, intelligent navigation and other functions, to achieve the interconnection between vehicles and vehicles, vehicles and roads, vehicles and users.

Green and low-carbon development: Under the vision of "carbon neutrality", the promotion of new energy vehicles is of great significance to reduce carbon emissions and achieve green development goals. New energy vehicles will become the mainstream of new sales vehicles, promoting the development of the automobile industry in a more environmentally friendly and low-carbon direction.

Market demand growth: With the improvement of consumers' awareness and acceptance of new energy vehicles, the market demand will continue to grow. Policy-driven will gradually shift to product-driven, and the improvement of electric vehicle product power will lead to the upgrading of automobile consumption.

Infrastructure construction: The construction of infrastructure such as charging piles will be further improved to provide strong support for the popularization of new energy vehicles. The government will increase investment in charging pile infrastructure and encourage local governments to provide free parking and other services for new energy vehicles.

Coordinated development of the industrial chain: The development of new energy vehicles will not only be limited to the vehicle itself, but will also drive the development of key components such as batteries, motors, electronic controls, charging facilities, intelligent network technology and other industrial chains, forming a more complete and coordinated industrial ecology.

To sum up, the future trend of new energy vehicles is technological innovation, green and low-carbon, market demand growth, infrastructure construction and coordinated development of the industrial chain. With the advancement of these trends, new energy vehicles will occupy a more important position in the future automobile market, and make important contributions to promoting the transformation and upgrading of the automobile industry and achieving green development.

According to data recently released by the Ministry of Industry and Information Technology, in July, the production and sales of new energy vehicles in mainland China reached 805,000 and 780,000 respectively, an increase of 30.6% and 31.6% year-on-year, respectively, and the market share reached 32.7%.

Industry experts said that with the support of a series of policies such as optimal supply and consumption promotion, new energy vehicles have continued to develop well, and supporting facilities have been continuously improved. The market penetration rate of new energy vehicles has increased, the technology has been continuously improved, and the innovation vitality of enterprises has been further stimulated, and the high-quality development of the industry has been continuously promoted.

For more details about the industry, you can click to view the report of the China Research Institute of Puhua Industry Research Institute

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