China’s total automobile sales, new energy vehicle (NEV) production and sales, and automobile exports all surpassed expectations in 2024, according to the China Association of Automobile Manufacturers (CAAM). Despite challenges in the commercial vehicle sector, the country set records with cumulative automobile production and sales reaching 31.28 million and 31.44 million units, respectively, marking a year-on-year increase of 3.7 percent and 4.5 percent. This marks the 16th consecutive year China has maintained annual production and sales volumes exceeding 30 million units, solidifying its position as the world’s largest automobile market.
Exports have been a key factor behind this growth, contributing significantly to the increase in production and sales. Xu Haidong, deputy secretary-general of CAAM, noted that exports accounted for 949,000 units, which made up 70.7 percent of the total growth in sales.
Despite a complex international environment, China’s automobile exports grew from around 3 million units in 2022 to over 6 million units in 2024, with a nearly 20 percent year-on-year growth in exports for the year. CAAM reported that China’s total automobile exports reached 5.86 million units in 2024, a 19.3 percent increase from the previous year. Exports of traditional fuel vehicles rose by 23.5 percent to 4.57 million units, while NEV exports increased by 6.7 percent to 1.28 million units.
On the domestic front, NEVs continued to gain market share, with production and sales reaching 12.89 million and 12.87 million units in 2024, marking a year-on-year increase of 34.4 percent and 35.5 percent, respectively. This growth has placed China at the top of the global NEV rankings for the 10th consecutive year. CAAM attributed the rise in NEV sales to initiatives like the old-for-new vehicle trade-in program and flexible local policies designed to stimulate consumption. NEVs now make up over 50 percent of total passenger vehicle sales in the domestic market.
In 2024, Chinese-brand passenger vehicle sales reached 17.97 million units, up 23.1 percent from the previous year, with domestic brands capturing a record market share of 65.2 percent. Chinese automakers are setting ambitious targets for 2025, with Geely Auto aiming for 2.71 million total sales, a 25 percent year-on-year increase, and NEV sales reaching 1.5 million units. Zeekr, which saw an 87.15 percent year-on-year growth in 2024, is targeting 320,000 deliveries in 2025. Xiaomi’s automotive division, led by founder and CEO Lei Jun, also set a 2025 target of 300,000 vehicle deliveries.
As domestic brands continue to rise in prominence, global automakers are adapting their strategies to align with the evolving Chinese market, according to Gong Min, head of automotive industry research at UBS China.
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