CAAM: China's auto industry exceeds expectations in 2024

Except for a relatively sluggish commercial vehicle market, China's automobile industry outperformed expectations in 2024, with total sales, NEV production and sales, and exports exceeding prior forecasts, the China Association of Automobile Manufacturers (CAAM) said on Monday.

Last year, the country achieved cumulative automobile production of 31.28 million units and sales of 31.44 million units, marking year-on-year growth of 3.7 percent and 4.5 percent, respectively, setting new records and surpassing the previously set full-year sales target, CAAM said.

The readings also marked the 16th consecutive year that annual production and sales volumes exceeded 30 million units, securing China's position as the world's largest automobile market.

Taking a closer look, EVs continued their rapid rise in popularity, with production and sales reaching 12.89 million and 12.87 million units, up 34.4 percent and 35.5 percent year-on-year, respectively. This represents a decade-long streak as the global leader in NEV production and sales.

The transition to intelligent electric vehicles has also further strengthened Chinese brands' market position. In 2024, domestic brands sold 17.97 million passenger vehicles, a 23.1 percent year-on-year increase, pushing their market share to a record 65.2 percent, up 9.2 percentage points, according to CAAM.

In response to the rise of domestic players, global automakers must adapt their strategies and operations in China, said Gong Min, head of automotive industry research at UBS China.

"China is no longer just the world's largest market but also a global R&D hub for cutting-edge automotive technologies. Multinational companies must leverage these resources to redefine China's role in their global operations," Gong noted.

Looking ahead, CAAM forecasts that in 2025, automobile production and sales will each reach approximately 32.9 million units, a 4.7-percent increase. NEV production and sales are projected to both grow to 16 million units, up 24.4 percent, with exports expected to rise to 6.2 million units, a 5.8 percent increase.