On April 10, the China Association of Automobile Manufacturers released data showing that in the first three months of 2024, China's automobile production and sales reached 6.606 million and 6.72 million units respectively, up 6.4% and 10.6% year-on-year, marking the highest quarterly production and sales since 2019.
In March, automobile production and sales reached 2.687 million and 2.694 million units respectively, up 78.4% and 70.2% month-on-month, and 4% and 9.9% year-on-year.
While automobile production and sales surged in March, Japanese joint venture brands also rebounded. According to the latest sales figures released by Nissan China, the sales volume for March, including both passenger and light commercial vehicles, reached 59,914 units, up 43.25% month-on-month. Among them, Dongfeng Nissan (including Nissan, Venucia, and Infiniti brands) sold 56,486 units, up 45.14% month-on-month.
From January to March 2024, the cumulative sales volume of Nissan's vehicles in China, including both passenger and light commercial vehicles, reached 167,291 units.
"This month, Nissan's Sylphy series, Teana, and SUV models continued to maintain strong growth momentum. Nissan's sales data for March and the first quarter showed growth compared to the same period last year."
Yasuhiro Shiozaki, Senior Vice President of Nissan Motor Company and Chairman of Nissan China Management Committee, and President of Dongfeng Motor Corporation, stated that the situation in the Chinese market remained complex in the first quarter of 2024.
In contrast, Honda's performance in the first quarter of this year in China was poor. From January to March 2024, Honda's cumulative retail sales in China amounted to 206,907 units, down 6.1% year-on-year. As for joint ventures, Guangzhou Honda's cumulative retail sales reached 108,361 units, and Dongfeng Honda's cumulative retail sales reached 98,546 units.
Guangzhou Toyota, another brand under the GAC Group that has been playing a leading role among Japanese joint ventures, also saw a rebound, with sales reaching 55,387 units in March, up 28% month-on-month.
"In March, hybrid vehicle sales increased by 19% year-on-year, and SUV family sales increased by 36%. At the same time, the ninth-generation Camry has started delivery," Guangzhou Toyota stated. On April 10, the latest data released by FAW Toyota showed that sales in March reached 58,031 units, with electrified vehicles accounting for 46%.
Behind the rebound of individual brands is the continued decline in market share of Japanese joint venture brands in China. According to the latest data from the China Association of Automobile Manufacturers, retail sales of mainstream joint venture brands in March totaled 500,000 units, down 8% year-on-year but up 49% month-on-month. The market share of Japanese brands dropped from 14.4% last month to 13.8% in March, a decrease of 2.2 percentage points year-on-year.
In April, Japanese joint venture brands began to increase their participation in price wars. With the relaxation of automobile loan policies, FAW Toyota and Dongfeng Honda have successively launched financial policies themed around "0 down payment" or "0 interest rate", while Guangzhou Honda has raised its comprehensive car purchase subsidy to a maximum of 51,000 CNY.
"The retail performance of the auto market in the first quarter of 2024 basically achieved the expected trend of a strong start, with significant month-on-month and year-on-year growth in March largely due to the post-holiday consumption recovery after the Spring Festival.
The price war after the Spring Festival quickly heated up, leading to a noticeable consumer wait-and-see attitude, coupled with attention to some new cars and expectations for the old-for-new policy, resulting in a slow start to the March auto market."
Looking ahead to April, Cui Dongshu, Secretary-General of the China Passenger Car Association, believes that the rescheduling of the May Day holiday will have a positive impact on April's auto market.
"With the recent listing of Xiaomi's cars and further adjustments to the prices of related models, coupled with the intensive release of new models in April, consumer enthusiasm in the market will gradually be stimulated."
