Beijing (Gasgoo)- China’s cumulative vehicle production and sales in 2024 reached 31.282 million and 31.436 million units, representing year-on-year growth of 3.7% and 4.5%, respectively, according to data from the China Association of Automobile Manufacturers (CAAM). Both figures hit new records, maintaining volumes above 30 million units.
Passenger vehicles continued to grow steadily in both annual production and sales volumes, playing a vital role in stabilizing the country’s auto consumption, while the commercial vehicle market underperformed, failing to meet the expected yearly output and sales threshold of 4 million units.
China’s new energy vehicle (NEV) sector achieved robust growth, with annual production and sales exceeding 10 million units for the first time. NEVs accounted for over 40% of the country’s total sales in 2024. On the other hand, the country’s auto exports also reached new heights in the past year, offering global consumers diversified options.
Despite these achievements, challenges remain for China’s auto industry. Key difficulties include the deepening adverse effects of external environmental changes, weak consumer confidence, insufficient internal demand for auto purchases, and intensified competition placing sustained pressure on profitability, threatening the industry’s overall healthy development.
AITO M5; photo credit: AITO
China has maintained its position as the world’s largest auto market for 16 consecutive years. In 2024, despite persistent weak domestic consumer confidence, intensifying global trade protectionism, and fiercer industry competition, effective implementation of government subsidies, continued promotional efforts by automakers, and comprehensive strategies helped boost consumer enthusiasm and kept the market size above 30 million units.
The first half of 2024 saw sluggish overall production and sales due to high inventory and weak demand, creating significant pressure across the supply chain. In the third quarter, domestic policy interventions stimulated retail market recovery, which continued its positive trajectory into the fourth quarter.
In December, China recorded auto production and sales of 3.366 million units (-2% MoM, +9.3% YoY) and 3.489 million units (+5.2% MoM, +10.5% YoY) each.
In the passenger vehicle sector, a total of 27.477 million units were produced in China in 2024, representing a 5.2% year-on-year rise. This also marked the second consecutive year for China to record passenger vehicle production exceeding 25 million units.
While the market underperformed in the first half of 2024, policy incentives boosted production and sales in the latter half, particularly in retail markets. In 2024, China’s passenger vehicle sales volume stood at 27.563 million units, up 5.8% from a year ago.
In December alone, the country’s passenger vehicle production and sales hit 3.006 million and 3.12 million units, respectively, with production declining 3.3% month on month but sales rising 3.9%. Compared to December 2023, production and sales increased by 10.8% and 11.7%.
The commercial vehicle sector remained weak in 2024 due to reduced investment and low freight rates, resulting in subdued demand for vehicle replacements. China’s annual production and sales of commercial vehicles were 3.805 million and 3.873 million units, down 5.8% and 3.9% year-on-year, respectively.
In December, production and sales reached 361,000 and 369,000 units, reflecting month-on-month jump of 10.2% and 17.1%, respectively. Compared to the same month in 2023, production fell by 1.5%, while sales rose by 1.2%.
L07; photo credit: DEEPAL
In 2024, China retained its position as the world’s largest NEV market for the 10th consecutive year. Multiple factors, including favorable policies, diverse offerings, lower prices, and improved infrastructure, contributed to the rapid NEV growth.
Throughout the past year, China’s NEV production and sales reached 12.888 million and 12.866 million units, surging 34.4% and 35.5% from a year ago. NEVs accounted for 40.9% of the country’s total new car sales, representing a 9.3 percentage point increase from 2023.
Among which, annual domestic NEV sales reached 11.582 million units (+39.7% YoY), while NEV exports hit 1.284 million units (+6.7% YoY).
Specifically, battery-electric vehicles (BEVs) accounted for 60% of China’s total NEV sales in 2024, indicating a 10.4 percentage point decline from 2023. Meanwhile, plug-in hybrid electric vehicles (PHEVs) grew rapidly to account for 40% of the total volume.
In December, China’s NEV production and sales amounted to 1.53 million and 1.596 million units, reflecting year-on-year surges of 30.5% and 34%, respectively. NEVs accounted for 45.8% of all new vehicle sales in the past month.
Domestic NEV sales reached 1.463 million units in December, up 2.4% month-on-month and 35.4% year-on-year, while NEV exports stood at 134,000 units, zooming up 60.7% month-on-month and 19.8% year-on-year.
COURAGE; photo credit: VOYAH
Since 2021, China’s automobile exports have seen continuous success, significantly contributing to overall production and sales performance. In 2024, auto exports jumped 19.3% from the year-ago period to 5.859 million units, including 4.955 million passenger vehicles (+19.7% YoY) and 904,000 commercial vehicles (+17.5% YoY).
In December, automakers in China shipped 504,000 vehicles to overseas markets, indicating a 2.9% month-on-month rise and 1.1% year-on-year uptick. Passenger vehicle exports came in at 426,000 units in the past month (+1.6% MoM, +1.1% YoY), while commercial vehicle exports reached 78,000 units (+10.9% MoM, +1% YoY).
Among the top 10 auto exporter in December, Chery led with monthly exports of 98,000 vehicles, which increased 12.3% from a year ago and accounted for 19.5% of the country’s total volume. BYD demonstrated the most significant growth with a 68.1% year-on-year surge, which amounted to 61,000 units in total.
Throughout the year of 2024, BYD exported a total of 433,000 vehicles, indicating a 71.8% year-on-year spike, still the highest growth among the top ten automakers.
In 2025, China’s economic policies will adhere to the principle of pursuing progress while maintaining stability, supported by proactive macroeconomic measures to bolster confidence, stimulate market activity, and drive economic recovery. On January 8, China’s National Development and Reform Commission and the Ministry of Finance jointly issued a notice on scaling up equipment upgrades and promoting vehicle replacements. As these policies take effect, the combined policy impact is expected to further unleash market potential, enabling the auto market to sustain steady growth.
