China’s Auto Production & Sales Surge Over 10% in Early Year Thanks to Trade-In Incentives

Select Language:

In the first nine months of the year, China’s vehicle manufacturing and sales experienced double-digit growth, driven by supportive policies like the trade-in initiative. Vehicle production increased over 13 percent, reaching 24.33 million units, while sales rose nearly 13 percent to 24.36 million units, according to data from the Chinese Association of Automobile Manufacturers.

The production and sales of new energy vehicles (NEVs) each jumped more than 30 percent, surpassing 11 million units by the end of September. NEVs now account for about 46 percent of all new vehicle sales, with a nearly 58 percent penetration rate in September alone.

Leading carmakers in China for the period included BYD, SAIC Motor, and Geely Automobile, with sales growth rates of 19 percent, 21 percent, and 43 percent respectively. In September, SAIC’s sales surged 22 percent to approximately 430,000 units, overtaking BYD, which saw a 5 percent decline to around 396,000 units.

Additional significant players included FAW Group, Changan Automobile, Chery Automobile, Dongfeng Motor Group, BAIC Group, and Great Wall Motor. Tesla ranked 11th overall.

Government policies successfully spurred consumer demand in the Chinese auto market this year, exceeding expectations, according to a representative from the China Automobile Dealers Association. Applications for vehicle trade-in subsidies are projected to surpass 12 million units during the trade-in policy’s validity from April last year through December this year. These transactions are expected to boost new car sales by nearly 1.7 trillion CNY (about $240 billion), with 60 percent of applications designated for NEV purchases.

The trade-in policy was originally set to end last year but was extended through the end of this year. Market watchers anticipate the government may extend it again.

Exports of vehicles from China reached approximately 4.95 million units in the first three quarters, a nearly 15 percent increase compared to the previous year, according to CAAM. NEV exports grew over 89 percent, totaling 1.76 million units.