NEV sales charge ahead in offseason

The auto market hit its usual midsummer lull in July, with growth easing, but some carmakers bucked the trend and set new monthly records.

According to the China Automobile Dealers Association, passenger vehicle retail sales reached approximately 1.9 million units in July, slightly exceeding expectations. The figure in 2024 was 1.73 million units.

The association noted that July saw the auto market enter its traditional offseason. With some regional subsidies phasing out, auto finance rebates falling, and automakers cutting promotions, consumer wait-and-see sentiment grew.

In terms of brands, BYD remained the leader with 344,300 vehicles sold in July, a modest year-on-year increase of 0.6 percent and down 8.8 percent compared with June.

Its performance in overseas markets jumped 159.5 percent in July, with sales of passenger cars and pickups reaching 80,200 units.

SAIC Group followed with 338,000 units sold in July, up 34.2 percent year-on-year. Its sub-brands and new energy vehicle sectors have emerged as the primary growth engines for SAIC.

Sales of its sub-brands including MG and IM Motors reached 214,000 units, a 39.4 percent year-on-year increase. Meanwhile, NEV sales amounted to 117,000 units, showing year-on-year growth of 64.9 percent.

Geely achieved sales of 237,700 units in July, up 58 percent year-on-year and 0.7 percent compared with June.

Its NEV sector soared 120 percent year-on-year to 130,100 units, accounting for 55 percent of the total.

Chery achieved vehicle sales of 224,400 units in July, up 14.7 percent year-on-year but down 3.9 percent over June. Among these, export vehicles accounted for 119,100 units, a 31.9 percent year-on-year increase, maintaining its position as the top Chinese auto exporter.

The competition among NEV startups intensified, with multiple players setting delivery records.

Leapmotor continues to hold top position among its peers with July deliveries at 50,100 units, a year-on-year growth of over 126 percent. This was the first time that its monthly delivery surpassed 50,000 units.

XPeng delivered 36,700 new vehicles in July, showing a 229 percent year-on-year growth and a 6 percent increase from June. It also set a record for monthly deliveries.

In contrast, Li Auto's deliveries fell, with 30,700 vehicles delivered in July, down 39.74 percent year-on-year. The automaker faced challenges following a public relations crisis triggered by a crash test video released during its i8 electric SUV launch event in late July.

Xiaomi's car deliveries hit a record high, exceeding 30,000 units in July.

The CADA said August is expected to outperform July because of the back-to-school season, car festival promotions, and auto shows.

The China Passenger Car Association upgraded its predictions for full-year sales and exports last week based on "better-than-expected "performance.

The CPCA now projects a 6 percent growth in China's car sales this year, with car export growth likely to reach 14 percent. This compares with the CPCA's June estimates of a 5 percent increase in car sales and a 10 percent rise in exports.