Auto Association of January sales interpretation: the overall car market remains sluggish, the new energy market as the only bright spot

China's auto market rebounded to a downturn in the first month of 2019 on the back of a broad market slump in 2018. January Auto Production and Sales Decrease Widened, New Energy Market Showed Splendid According to the domestic auto production and sales data released by China Association of Automobile Manufacturers (hereinafter referred to as "CAAM") in January 2019, China's auto production and sales reached 2.365 million vehicles and 2.367 million vehicles respectively in January 2019, down 12.1% and 15.8% respectively from the same period last year; Production and sales were down more than 10% year-on-year. Among them, the production and sales of passenger cars in January were 1.995 million and 2.021 million respectively, down 14.4 percent and 17.7 percent year-on-year, respectively. In terms of sales of the four types of passenger vehicles, sedans, SUVs, MPVs and microbuses fell across the board, all by more than 10% year-on-year. Source: CAAA's sales of commercial vehicles are slightly better than the expanding year-on-year decline in the passenger car market, but the downward trend is still hard to hide. Data show that in January, China's commercial vehicle sales of 346,000 units, down 2.2% year-on-year. According to the sales volume of each model, the sales volume of passenger cars reached 33,000 units, down 6.7% year-on-year. Sales of trucks reached 313,000 units, down 1.7% year-on-year. January 2019 New Energy Vehicle Sales (Source: CAAC) While passenger and commercial vehicle sales fell across the board, new energy vehicles were the only "bright spot" in January sales. According to statistics from the China Association of Automobile Manufacturers (CAAM), 91,000 new-energy vehicles were produced and sold in January Compared with the same period last year, the number of vehicles increased by 113 percent and 138 percent respectively. Among them, the production and sales of pure electric vehicles reached 67,000 and 75,000 respectively, up 141.1% and 179.7% respectively over the same period of last year. Production and sales of plug-in hybrid electric vehicles reached 24,000 and 21,000, up 59.9 percent and 54.6 percent respectively over the same period last year. In terms of the types of new energy vehicles, the production and sales of new energy passenger vehicles reached 82,000 and 85,000 respectively, up 115.9% and 138.3% respectively over the same period of last year. The production and sales of new energy commercial vehicles reached 9,000 and 11,000 respectively, up 90.1 percent and 135.1 percent respectively over the same period of last year. In January 2019, the market share of the major factions in China also quietly changed. Among them, the Chinese brand passenger car, the United States, South Korea and the market share of the legal system, compared with the same period last year, have shrunk; The market share of German and Japanese brands expanded further, with the share of Japanese brands in the domestic market rising from 17.1% in the same period last year to 21.3% in January this year, an increase of 4.2 percentage points. Source: Auto Association of China and the Chinese brand passenger car market share of the shrinking, with some brands growth related to the weak. Figures show that January In 2007, China's brand passenger cars sold 831,800 new cars, down 22.17 percent year-on-year, and the market share was 2.36 percentage points lower than that of the same period last year. In the top 15 Chinese brand passenger car enterprise groups, SAIC, Chang'an, Dongfeng, Guangzhou Automobile, Beijing Automobile and other enterprises fell significantly; However, Geely, Great Wall, Chery, BYD and Jianghuai maintained a positive growth trend. In addition, in January, the export volume of China's automobile enterprises reached 83,000 units, up 3.2 percent on the previous month and 4.4 percent on the same month of last year. In terms of vehicle types, 54,000 passenger cars were exported this month, down 4.9 percent from the previous month and 9.8 percent from the same period last year. Exports of commercial vehicles totaled 29,000, up 22.5 percent from the previous month and 47.6 percent from the same period last year. From this point of view, in January, the export volume of commercial vehicles occupies a pivotal position in the total export volume of China 's automobile enterprises. Overall, in January, China's auto market downturn intensified. Industry analysis believes that the reason for the further expansion of the production and sales decline in January is related to such factors as the Spring Festival and the imminent implementation of the Sixth National Standard. With the implementation of the national policy to promote auto consumption, the overall auto market is likely to show a "low before high" market trend in 2019.