China’s auto market experienced challenges in October. Tesla’s late October price reduction in China raised questions regarding whether or not there will be price reductions by other new energy vehicle enterprises in the country. In this regard, Cui Dongshu, secretary-general of the China Passenger Car Association, believes that they will launch small-scale preferential activities, instead of one large price reduction.
Cui believes that at the end of this year, a round of price increases may occur as the national subsidy for new energy vehicle buyers will be withdrawn next year. If the car companies cut prices now and then raise prices next year, they will be in a passive position, which is not conducive to the growth of sales. At present, new energy vehicle makers, especially stores in shopping malls with high rental fees, are facing a decline in passenger flow and are under great pressure in terms of sales volume.
According to the report of the association on November 8, the retail sales of passenger cars reached 1.84 million units in October, up 7.3% year-on-year and down 4.3% quarter-on-quarter. This is the first time since 2013 that the golden automobile sales period has witnessed a decline month-on-month. From January to October, the cumulative retail volume of passenger cars was 16.716 million vehicles, up 3% year-on-year.
The retail sales volume of new energy passenger cars in October was 556,000 units, up 75.2% year-on-year and down 9% quarter-on-quarter. In October, there were 15 car companies whose wholesale sales of new energy vehicles exceeded 10,000 units. Among them, only NETA Auto, as an EV startup, rushed into the top ten.
103,000 new energy passenger cars were exported in October, accounting for 39% of the total export volume. Specifically, in October, Tesla China, SAIC, and BYD exported 54,500 vehicles, 18,700 vehicles and 9,529 vehicles respectively.
Cui Dongshu revealed that, at present, the export of Chinese auto brands to European and American markets and third-world countries has made a comprehensive breakthrough, and the bases of global brands in China are blooming. Cui also suggested that with the changes in the world economy, the increasing speed of China’s exportation may slow down, but car companies are still striving to increase expansion in overseas markets, which is expected to make a greater contribution to the auto market.