China’s Auto Market Surges as Year End Approaches
November saw a surge in China’s auto market, driven by strong performance from domestic automaker and fierce competition. With December promised more of the same as automakers struggle for year-end sales.
Legacy Automakers Face Challenges as Lat Year’s Trend Continues
BYD, a leading new energy vehicle (NEV) manufacturer dominated November sales, selling 506,800 units — a staggering 67.9 percent increase year-on-year. This marked BYD’s second consecutive month of exceeding 500,000 units in a month.
The company attribute this success to its Dynasty and Ocean series, signifying a shift toward electric vehicles in a market that had previously favored gasoline-powered vehicles.
Other established automakers like SAIC Motor, previously China’s largest campus, faced challenges, with November sales declining 7.06 percent, year-on-year. The Shanghai-based company reported sales of 479,000 units for November, representing 64.77 percent of its annual sales target. Its overall sales dipped 1.81 percent in the first 11 months.
Startup Race Heats Up
Despite the potential of the NEY market, it was the NEY startups who
truly exemplified by bursting onto the scene.
Leapmotor, backed by Stellantis, continues to impress, selling 40,200 vehicles in November – a year-on-year growth of 117 percent. It surpassed its annual delivery target of 250,000 units
xiaomi Auto achieved its annual sales goal of 100,000 units ahead of schedule.
CEO Lei Jun celebrated the milestone, saying that reaching 100,000 units rolled off the line in just 230 days after launch. Xiaomi confidently predicts reaching 130,000 units by the year-end.
Li Auto celebrated setbacks after selling 442,000 units in the first 11 months., representing 88.
What does the late-year surge in China’s auto market suggest about its outlook for 2025?
## China’s Auto Market: Riding High Towards Year End
**Host:** Welcome back. Joining me today is Alex Reed, [Alex Reed Title and Affiliation], to discuss the fascinating surge in China’s auto market as we approach the end of the year. Alex Reed, thanks for joining us.
**Alex Reed:** Thank you for having me.
**Host:** We’re seeing reports of November sales exceeding expectations. What’s driving this late-year push in the Chinese auto market?
**Alex Reed:** Absolutely. The November sales figures are quite remarkable. We’re seeing a combination of factors at play. Firstly, pent-up demand after the COVID lockdowns is still finding its way into the market. Additionally, there’s been a lot of incentives and promotions offered by both automakers and dealerships leading up to the holiday season.
**Host:** Interesting. A recent McKinsey survey, [1](https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/mckinsey-china-auto-consumer-insights-2024), shed light on consumer behavior in the Chinese auto market. Any takeaways from that report that relate to this surge?
**Alex Reed:** Certainly. The McKinsey report highlighted a growing preference for SUVs and premium vehicles among Chinese consumers. This trend aligns with the sales data we’re seeing, as many of the top-selling models in November fall into these categories.
**Host:** What does this late-year surge tell us about the outlook for the Chinese auto market in 2025?
**Alex Reed:** While it’s too early to definitively predict 2025, this strong finish to 2024 suggests continued growth potential in the Chinese market.
**Host:** Thanks for providing your insights today, Alex Reed. It’ll be fascinating to see how the Chinese auto market evolves in the coming year.
**Alex Reed:** My pleasure.
