Overview of the Global Automotive Industry

• The global automotive industry continues to show diversified trends in 2024, with intelligence, electrification and globalization emerging as the industry's three main thrusts. China, the U.S., and Europe remain the world's largest automotive markets, with China's market share being particularly prominent, accounting for more than 30% of the global total.

Global Automotive Industry

Technological Innovation and Market Trends

• The automotive industry is undergoing profound technological changes, with the trend of electrification becoming increasingly evident and the electric vehicle market growing rapidly. global electric vehicle sales accounted for more than 15% of new car sales in 2023, and this percentage is expected to continue to rise.1 The wave of intelligence has driven the rapid development of self-driving technology, and it is expected that by 2030, self-driving vehicles with L3 level and above will account for 20% of new car sales above.

Electric Vehicles

China's automotive industry's position and development

• China's automotive industry continues to improve its position in the global market, with independent brands such as BYD, Geely and Great Wall showing strong growth in sales and market share. The rapid rise of new energy vehicles and changes in consumer demand have brought new development opportunities for the Chinese automotive industry. 2023 sales of new energy vehicles in China accounted for more than 30% of total vehicle sales, demonstrating the Chinese market's leading position in the new energy vehicle sector.

New Energy Vehicles

Industry Challenges and Opportunities

• Challenges facing the automotive industry include volatile raw material prices, supply chain disruption risks, and increasingly stringent environmental regulations. At the same time, emerging areas such as new energy vehicles and smart internet technology present great opportunities for the industry. China's automotive industry is expected to continue to grow steadily, driven by policy guidance and market demand. The further popularization of new energy vehicles and the transformation and upgrading of traditional vehicles will be the main drivers of future industry growth.

Automotive Industry Challenges

Latest Data and Market Dynamics

• In the first five months of 2024, China's automotive industry revenue reached RMB 3.89 trillion, up 7% year-on-year, while costs stood at RMB 3.4 trillion, up 7% year-on-year. The penetration rate of new energy vehicles has gone up, with cumulative sales of 3.25 million units from January to May, up 33% year-on-year, becoming an important factor driving profit growth in the auto industry. Independent brands showed strong growth momentum in both sales and market share, with Chinese brands selling 7.419 million units in total domestic auto sales, up 23.9% year-on-year, with a market share of 61.9%.