Top 10 News Highlights of China’s Automotive Industry in 2024

The automotive industry in 2024 demonstrated remarkable resilience amidst fierce competition, with record-breaking market achievements and rapid technological advancements. From the rise of domestic brands to the electrification wave, here are the most significant events shaping the year:

1. Trade-In Policies Boost Automotive SalesChina introduced enhanced trade-in policies to spur car consumption. Subsidies doubled, reaching ¥20,000 for new energy vehicles (NEVs) and ¥15,000 for fuel-powered cars. Over 400 million applications have been processed, highlighting consumer enthusiasm.

2. NEV Production Hits 10 Million UnitsFor the first time, China’s NEV production exceeded 10 million units annually, with passenger car penetration rates surpassing 50%. This milestone arrived 11 years earlier than projected, solidifying China as a global leader in the NEV market.

3. Domestic Brands Capture Over 70% Market ShareIn October 2024, domestic car brands accounted for 70.1% of total sales, marking a historic leap. This surge underscores the growing dominance and global competitiveness of Chinese automakers.

4. Setbacks for Emerging AutomakersHigh-profile startups HiPhi and Jiyue faced major challenges, including production halts and financial woes, highlighting the intensifying “survival of the fittest” dynamic in the NEV sector.

5. BYD’s Record-Breaking SalesBYD revolutionized the market with its slogan “Electricity Cheaper Than Gas.” October marked a record-breaking month as the company sold over 500,000 vehicles, showcasing the growing affordability and popularity of NEVs.

6. EU Introduces Tariffs on Chinese EVsThe EU imposed five-year anti-subsidy tariffs on Chinese EVs, ranging from 17% to 35%. Despite ongoing negotiations, this decision underscores the challenges of international trade for Chinese automakers.

7. Auto Executives Turn to LivestreamingLeading automakers embraced livestreaming as a cost-effective marketing tool. Executives from NIO, XPeng, and Geely took to digital platforms to drive sales and engage with consumers directly.

8. Autonomous Driving Companies Rush to IPO2024 saw a surge in IPOs from autonomous driving companies, with innovations in end-to-end driving solutions and large-scale AI models driving rapid advancements in the industry.

9. Solid-State Batteries Gain TractionGlobal automakers accelerated solid-state battery development, promising higher safety and energy density. Companies like Honda and Toyota plan mass production by 2025, signaling a new era for EV technology.

10. Price Wars Challenge DealersA year-long price war created turmoil for dealerships and the used-car market. However, trade-in subsidies offered relief, with secondhand car inventory cycles stabilizing by late 2024.

In 2024, China’s automotive industry overcame market pressures, nearing record sales, with domestic brands transitioning from followers to leaders. Technological innovation drove growth, while the focus shifted to efficiency and profitability for sustainable development.