Brisk year of vehicle sales shows no sign of stopping

As year-end approaches, China's automotive market is thriving, with domestic automakers reporting a strong performance in November and foreseeing fiercer competition to propel deliveries to new heights in December.

New energy vehicle giant BYD sold 506,800 units in November, up 67.9 percent year-on-year, marking its second consecutive month above 500,000. The Dynasty and Ocean series have remained BYD's sales drivers, with 485,200 units sold in the month.

The automaker's deliveries of the first 11 months stood at 3.76 million, having exceeded its full-year target of 3.6 million.

BYD rolled its 10-millionth NEV off the production line on Nov 18. It achieved the first 5 million in nearly 15 years and the next in just 15 months.

Newly listed on the Fortune 500 this year, Chery sold 280,500 cars in November, up 32.2 percent year-on-year. It brought its 11-month total to 2.3 million units, up 38.4 percent year-on-year.

Chery's exports from January to November reached 1.05 million units, setting a record as the fastest Chinese automaker to reach 1 million exports in a year.

The automaker has essentially met its 2024 sales target of 2.13-2.31 million units, as outlined by chairman Yin Tongyue earlier this year.

Geely Auto achieved a record high in November with 250,100 units sold, up 27 percent year-on-year. From January to November, cumulative sales reached 1.97 million units, ensuring the company will surpass its annual target of 2 million units.

In contrast, once the largest Chinese automaker by sales, SAIC Motor, reported November sales declined by 7.06 percent year-on-year to 479,000 units. Its sales in the first 11 months totaled 3.53 million units, down 19.48 percent year-on-year, reaching 64.77 percent of its annual sales target.

Great Wall Motor sold 127,400 vehicles last month, up 3.7 percent year-on-year, while its January to November sales declined 1.81 percent to 1.1 million units, 57.8 percent of its sales goal.

Cui Dongshu, secretary-general of the China Passenger Car Association, said it is normal even if the sales target is not met, attributing this to price wars and intense competition in the market.

The race among NEV startups is even fiercer, with most reporting a better performance than 2023, while some are struggling to survive.

Stellantis-backed Leapmotor sold 40,200 cars in November, jumping 117 percent year-on-year. It has delivered 251,200 units year-to-date, surpassing its annual delivery target of 250,000 vehicles.

Similarly, Xiaomi Auto announced on Nov 13 that it had surpassed its annual target of 100,000 units ahead of schedule. CEO Lei Jun said having 100,000 units rolled off the production line in just 230 days after launch is "an unprecedented miracle".

The company expressed confidence in reaching the new target of 130,000 units this year. Its only model on sales, the SU7, sold more than 20,000 units in November.

Li Auto sold 442,000 units in the first 11 months, up 35.72 percent year-on-year, achieving 88.4 percent of its sales target. Despite challenges, Li Auto has expressed confidence in reaching its full-year target of 500,000 deliveries.

In the first 11 months, Nio delivered 190,800 vehicles, up 34.36 percent, achieving 83 percent of its 2024 sales target. With its subbrand Onvo, Nio aims to double sales by 2025 and be profitable by 2026.

Xpeng's growth was fueled by new models, with its Mona M03 delivering more than 10,000 units monthly and the P7+ exceeding 7,000 units in 23 days. Its sales in November were 30,900 units, up 54 percent over 2023. Its year-to-date sales reached 153,400 units, 54.8 percent of its 2024 sales target.

Neta Auto has not disclosed its sales data since October, raising concerns. Once a sales leader among NEV startups, Neta Auto has faced negative reports, including layoffs and store closures, since October.

Reports say Neta Auto is seeking external resources to stabilize its supply chain, with several suppliers gathered to help resume production and operations at Neta's Nanning factory.

The next three to five years will be pivotal for smart EVs, with fierce race in technology, products and delivery putting many automakers at risk of closure or restructuring if they cannot keep up, industry analysts noted.

They added that the heated market can be attributed to year-end promotional discounts, the approaching end of trade-in subsidies, and a combined boost from the "Double 11" shopping festival and the Guangzhou auto show, which enhanced the consumption atmosphere.

Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association, predicted that automakers will push to meet annual targets, with the year-end subsidy policy boosting demand. Combined with pre-Chinese New Year demand, December sales are expected to rise, continuing both year-on-year and month-on-month growth.

According to data from the China Passenger Car Association on Tuesday, passenger car retail sales totaled 2.45 million units in November, up 18 percent year-on-year and 8 percent month-on-month. Year-to-date retail sales reached 20.28 million units, a 5 percent increase year-on-year.

NEV retail sales reached 1.28 million units in November, a 52 percent year-on-year increase and 7 percent higher than October. Year-to-date NEV retail sales totaled 9.6 million units, up 41 percent year-on-year.