Chinese Market Q1 2024

BYD announces smart vehicle strategy; VW and XPeng collaborate

2024/05/07

Summary
Trends of Chinese OEMs (Q1 2024)
Trends of major non-Chinese manufacturers (Q1 2024)
Policies related to China's automotive industry (Q1 2024)
Major Chinese automakers' 2024 Q1 sales volumes (ex-factory)

Summary

BYD's intelligent architecture "Xuanji" (Source: BYD)

The China Association of Automobile Manufacturers (CAAM) announced on April 10, 2024, that vehicle sales volumes in China showed a 10.6% year-over-year (y/y) increase to 6.72 million units in the first quarter (January-March) of 2024. Of this total, passenger car sales grew 10.7% y/y to 5.687 million units. Commercial vehicle sales increased 10.1% y/y to 1.033 million units. New Energy Vehicles (NEVs: BEVs, PHEVs, FCVs) grew 31.8% y/y to 2.09 million units, giving NEVs a 31.1% share of the motor vehicle market in China.

This report presents significant trends and activities of Chinese and major foreign automakers in the Chinese market in the first quarter (Q1) of 2024. Many automotive OEMs have announced sales targets for 2024. The SAIC Group's sales volume target is 5.45 million units, the FAW Group 3.47 million units, Changan Automobile 2.8 million units, and Geely Automobile 1.9 million units. In the NEV sector, GAC Aion’s electric powertrain plant started operations. BYD continues to deploy NEV and component projects in various regions. Xiaomi has launched the brand's first EV sedan. Geely has entered into several partnerships in the methanol-powered vehicle sector. In intelligentization, BYD announced its smart vehicle strategy, and several brands under Dongfeng Motor formed a strategic alliance with Huawei in the smart car field. Chery Automobile announced a joint venture with iFlytek to build an intelligent sound products plant.

Major foreign automakers continue to put emphasis on the localization of R&D and manufacturing. Volkswagen signed an agreement with XPeng for a technology partnership to jointly develop platforms and software. In addition, VW’s Tianjin plant renovation project was completed, and upgrades to the Shanghai Anting-based electrification production center, the R&D Innovation Center, and the Intelligent Manufacturing Center were accelerated. Furthermore, Audi's Changchun electric vehicle plant has begun small-lot production. Honda's EV plant in Wuhan is scheduled to be completed soon, with production expected to begin within 2024. Dongfeng-Peugeot-Citroen Automobile, a joint venture between Dongfeng Motor Group Corp. and Stellantis will renovate and upgrade its Chengdu Plant to advance the transition to NEVs.

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