Experiencing an economic revival after the Covid-19 pandemic, China’s automotive industry reported peak sales this June. Among many thriving manufacturers, BYD spearheaded the surge by delivering 253,046 vehicles within the month, an uptick of 88.2% compared to the previous year.
BYD, a top domestic producer of new-energy vehicles (NEVs), also announced a significant sale of 240,535 NEVs for June. By the month’s end, the company’s cumulative sales of NEVs exceeded a noteworthy 4.6 million.
Following close on BYD’s heels, GAC Group’s Aion brand chalked up 45,013 NEV sales. The prosperous scene extended beyond established manufacturers, as emerging entities such as Li Auto saw monthly sales surpass the 30,000 mark for the first time in June. Leap Motor, Hozon Auto, and Nio Inc., reported deliveries exceeding 10,000 vehicles within the same month.
Reaping the benefits of China’s flourishing market, Tesla, the US-based automaker, outperformed market expectations by delivering 466,140 vehicles worldwide in the second quarter, an increase of 83% compared to the previous year. Tesla’s Model Y remained the bestseller in China for many months, with over 50,000 cars delivered to the Chinese market in May, marking a striking 152% rise year on year. Data for June remains undisclosed.
Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), anticipates a new monthly sales record, thanks to the strong performance in June. The automotive industry’s momentum, driven by strategies encouraging consumer spending and comprehensive development of the industry, is likely to persist throughout the year.
Domestic passenger car sales are now significantly outperforming those in Europe and North America, emphasizing China’s dominance on the global stage.
Sensing the potential of the Chinese market, global auto producers have organized visits by senior executives to China in recent months. Mary Barra, CEO of US-based General Motors, and Elon Musk, CEO of Tesla, visited China, conveying their intent to bolster relations and investments in NEVs and intelligent connected vehicles.
Europe is also showing faith in the Chinese market. Last year, direct investment by European companies into China’s automotive sector reached 6.2 billion euros ($6.75 billion), compared to the 1.5 billion euros invested in other sectors, according to data from US consulting firm Rhodium.
This booming success of China’s automotive industry showcases its resilience, providing a fertile ground for both domestic and foreign players to grow and prosper post-pandemic.
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