The China Association of Automobile Manufacturers (CAAM) announced sales figures for July on Aug 10th, showing SAIC (600106.SH), GAC (600238.SH) and Changan (000625.SZ) among the top three, with sales of 352,546, 180,518 and 177,941 units respectively. SAIC fell 22.95 percent year-on-year, Guangzhou Auto fell 1.86 percent year-on-year, and only Changan maintained a 7.89 percent growth.
However, the most fierce rise is still BYD (01211.HK), whose sales of 56,975 units in July, a year-on-year surge of 89.4 percent, became the largest sales increase of car companies. Its new energy vehicle sales of 50,057 units, accounting for 88% of total sales, soared 262.7% year-on-year.
On specific models, BYD Han sold 8,522 units in July, with cumulative sales exceeding 100,000 units; BYD Tang sold 4,676 units, with cumulative sales exceeding 250,000 units; BYD Qin sold 19,032 units, with cumulative sales exceeding 370,000 units; BYD Song sold 14,425 units, with cumulative sales exceeding 940,000 units, including a 559.2 per cent year-on-year increase in Song DM.
This year, due to the impact of chip shortage, SAIC and GAC two groups of car sales have declined, but still far ahead of Changan, Geely and other car companies. BYD has benefited from the launch of new vehicles, as well as the hot sales of new energy vehicles, and has maintained a surge in sales for several months in a row. Moreover, the BYD Dynasty family has covered several price segments, and the flagship Han family has also achieved quite impressive results.
The figures also show that fuel cars are still the first choice for consumers in the domestic auto market. However, more and more users have accepted and recognised new energy vehicle products, driving the continued growth in sales of new energy vehicles, while sales of fuel vehicles have started to trend downwards.
However, the market penetration rate of new energy vehicles in China is still not high, only about 14%, which is probably due to the lack of perfect infrastructure construction and the more obvious drawbacks of new energy vehicles. Compared to traditional fuel vehicles, electric vehicles have a relatively short range and are more dependent on charging stations. Although charging stations and piles are being built in China, they are still unable to meet market demand.
Traditional fuel vehicles do not have this concern, as they have a long range and are readily available at gas stations, so there is basically no range concern. However, the world is advocating energy saving and emission reduction, and fuel vehicles will definitely be phased out in the future.
If the country wants to accelerate the development of the new energy vehicle industry, it will have to speed up the construction of infrastructure such as charging stations, so that car owners can enjoy charging more conveniently, and more people will be willing to pay for new energy vehicles.
Industry Insights Dept
TickerInsider News Network