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June has just passed, and it is time for major car companies to submit their report cards.
On July 1, new energy vehicle brands such as BYD, "Wei Xiaoli", and Hongmeng Zhixing announced their sales in June. As the leader of China's new energy vehicles, BYD continues to lead the market. According to the data, BYD's sales of new energy vehicles in June were 341,700, of which 145,200 were pure electric vehicles and 195,000 plug-in hybrid vehicles, achieving the feat of selling more than 300,000 units for the fourth consecutive month. The cumulative sales in the first half of the year reached 1.613 million units, a year-on-year increase of 28.46%.
Echoing BYD's strong performance, a number of new power brands also achieved good results in June. Li Auto continued to lead the new power brand with 47,774 deliveries, a year-on-year increase of 46.7%, becoming the first new force in sales in June. Driven by the new model Ideal L6, Li Auto has not only successfully exceeded 20,000 units in monthly delivery, but also returned to the top of China's new brand sales list with the monthly delivery volume of more than 40,000 units of all products. Li Auto delivered a total of 188,981 vehicles in the first half of the year, achieving 39.37% of its annual sales target.
NIO is not far behind, delivering a total of 21,209 new vehicles in June, a year-on-year increase of 98% and a record high. NIO delivered a total of 87,426 new vehicles in the first half of the year, a year-on-year increase of 60.2%. Leapmotor and ZEEKR also achieved new breakthroughs in deliveries in June, delivering 20,116 and 20,106 vehicles respectively, both hitting record highs. Leapmotor's year-on-year growth rate reached 52.3% and 10.7% month-on-month. ZEEKR delivered 20,106 vehicles in June, a year-on-year increase of 89%, which is also the first time that ZEEKR delivered more than 20,000 vehicles in a month.
Deep Blue Automobile sold 16,659 vehicles in June, up 107% year-on-year. Xpeng delivered 10,668 electric vehicles in June, up 24% year-on-year and 5% from the previous month.
As another brand with outstanding performance, the sales of new energy vehicles reached 44,126 in June, a year-on-year increase of 372.04%, of which the sales of Sailis Automobile reached 41,457, a year-on-year increase of 631.42%.
However, not all brands have been able to maintain growth in this sales war. GAC Aion and Nezha Automobile are facing the dilemma of year-on-year decline in sales. GAC Aion's global sales in June were 35,027 units, a year-on-year decrease of 22.18%, and sales have declined for five consecutive months. Nezha Automobile delivered 10,206 vehicles in June, a year-on-year decrease of 15.88%, and its sales have declined year-on-year for five consecutive months.
The first half of 2024 is over, how have the annual sales targets of major car companies been achieved? According to a reporter from the China Securities Journal, BYD and Geely Automobile have completed more than 40% of the annual sales target, while Li Auto and ZEEKR Automobile have completed more than 30% of the sales target. In contrast, the sales progress of Xpeng Motors is less than two percent, and it is facing greater sales pressure. Overall, the progress of auto companies in achieving their sales targets is not ideal.
The layout of China's new energy vehicle enterprises: concentrated in the eastern and southern regions
From the perspective of regional distribution, the layout of mainland new energy vehicle enterprises is mainly concentrated in the eastern and southern regions. Among them, Jiangsu, Shanghai, Anhui, Zhejiang and Guangdong are the regions with more distribution of new energy vehicle enterprises. In the eastern region, there are many automobile production plants and a large number of headquarters of new automakers. Traditional automakers, on the other hand, prefer to set up their headquarters in the southern region and build production plants and R&D centers in the eastern region.
New energy vehicle industry sales forecast
In October 2020, the State Council issued the "New Energy Vehicle Industry Development Plan (2021-2035)", which clarified the goal of new energy vehicles accounting for about 20% of new vehicle sales by 2025. According to the China Association of Automobile Manufacturers, mainland car sales will reach 30 million units by 2025. In addition, according to the Work Plan for Steady Growth of the Automotive Industry (2023-2024) issued by the Ministry of Industry and Information Technology in September 2023, it is planned that the sales of new energy vehicles in mainland China will reach 9 million units in 2023.
At present, there are more than 100,000 auto parts enterprises in the automotive industry chain in mainland China, including more than 10,000 foreign-invested enterprises. As an important part of the mainland's automobile industry, the auto parts industry has annual sales of more than 4 trillion yuan and an annual import and export volume of more than 150 billion US dollars. Wu Songquan, senior chief expert of China Automotive Technology and Research Center, pointed out that the automobile industry is a global industry, and the mainland's automobile industry chain and supply chain include a large number of foreign-funded enterprises, which have been deeply integrated into the global automotive industry supply chain.
Sun Weidong, an analyst at Orient Futures, believes that the development of China's new energy vehicle industry has shifted from policy-driven to market-driven, and the penetration rate of new energy vehicles has exceeded 50% for the first time since 2024, surpassing traditional fuel vehicles for the first time. In terms of the competitive landscape, the market share of independent brands is expected to continue to expand, and the leading enterprises have a first-mover advantage. Integrated vertical integration will help OEMs grasp their core competitiveness and bargaining power, and reduce costs and increase efficiency. He suggested that investors pay attention to new energy vehicle companies with strong product strength, smooth overseas promotion and stable supply.
With the further integration of the new energy vehicle industry with various transformative technologies such as energy storage, big data, cloud computing, and intelligent networking, the automotive industry is expected to usher in new development opportunities. The demand for new energy vehicles from mainland consumers will continue to rise, which will promote the development of the new energy vehicle industry. At the same time, the government's support policies for new energy vehicles will also further promote the development of the new energy vehicle industry. It is foreseeable that the new energy vehicle industry in mainland China will usher in a broader development space and become an important growth point for the automotive industry.
Prospective Economist APP Information Group
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