China's auto industry supply chain, which was impacted by the pandemic, has fully recovered.

BEIJING, July 11 (China News Service, reporter Yan Xiaohong) — The China Association of Automobile Manufacturers released the production and sales figures for the automotive industry in June today: In June, China's automobile production and sales reached 2.499 million units and 2.502 million units, respectively, representing month-on-month increases of 29.7% and 34.4%, as well as year-on-year growth of 28.2% and 23.8%, marking an end to the previous downward trend. Meanwhile, the automotive supply chain, which had been disrupted by the pandemic, has now fully recovered. From January to June, China's auto production and sales both exceeded 12 million units, totaling 12.117 million and 12.057 million vehicles, respectively—down 3.7% and 6.6% year-on-year. Notably, the decline narrowed by 5.9 percentage points and 5.6 percentage points, respectively, compared to the period from January to May.
Under the combined effect of the national policy to halve the purchase tax and local government initiatives aimed at boosting auto consumption, the wholesale volume of passenger vehicles in June performed strongly, while the retail market also showed noticeable improvement, resulting in overall growth that defied the typical "off-season" trend. Meanwhile, commercial vehicle production and sales saw a rapid month-on-month increase, though they continued to decline sharply year-on-year. Notably, in June, Chinese automakers exported 249,000 vehicles—breaking yet another record high, up 1.8% from the previous month and soaring by 57.4% compared to the same period last year. In the first half of the year, China's auto exports maintained robust growth, further highlighting the country's growing competitiveness in the global market.
In June, China’s new-energy vehicle production and sales continued to perform exceptionally well, with monthly output and sales nearing 600,000 units—reaching a new all-time high. Specifically, production hit 590,000 vehicles, while sales climbed to 596,000 units, representing month-on-month growth of 26.6% and 33.4%, respectively. Year-on-year, both figures surged by 1.3 times, driving the market share up to 23.8%. From January to June, China’s new-energy vehicle industry maintained robust growth momentum, with cumulative production and sales reaching 2.661 million and 2.6 million units, respectively—both increasing by 1.2 times compared to the same period last year. Meanwhile, the market share of new-energy vehicles rose to 21.6%. Among the key segments of new-energy vehicles, pure electric cars, plug-in hybrid vehicles, and fuel-cell vehicles continued to exhibit rapid growth compared to the same period last year. Meanwhile, during the first six months of the year, the top ten Chinese automakers (by group) collectively sold 10.343 million vehicles, accounting for 85.8% of the country’s total auto sales. Notably, among these top ten companies, BYD once again demonstrated the most impressive sales growth rate compared to the previous year, while GAC and Chery experienced relatively strong expansion. In contrast, several other major players saw a slight decline in sales performance compared to the same period last year.
The China Association of Automobile Manufacturers stated that, looking ahead to the second half of the year, China’s macroeconomy is expected to maintain steady growth, while consumer confidence in the market will also see a noticeable recovery. Additionally, the effects of the policy reducing purchase tax by half will continue to emerge, further boosting the rebound in the passenger vehicle market. Meanwhile, driven by favorable factors such as infrastructure investment and the extension of principal and interest payments for truck loans, the truck market is also poised to bottom out and rebound. Moreover, new-energy vehicles are set to sustain their rapid growth momentum. Overall assessment suggests that China’s automobile production and sales are expected to remain on a steady growth trajectory throughout the year.

Translated from Sina Auto

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