From January to October 2020, automobile production and sales were 19.519 million and 19.699 million units, a year-on-year decrease of 4.6% and 4.7%. Compared with January to September, the decline narrowed by 2.1 percentage points and 2.2 percentage points respectively.

The automobile market is in the “Golden Nine and Silver Ten” years, showing an upward trend in production and sales. From January to October 2020, automobile production and sales were 19.519 million and 19.699 million units, a year-on-year decrease of 4.6% and 4.7%. Compared with January to September, the decline narrowed by 2.1 percentage points and 2.2 percentage points respectively. Among them, automobile production and sales in October reached 2.552 million and 2.573 million units respectively, a month-on-month increase of 0.9% and 0.31%, and a year-on-year increase of 11.0% and 12.5%. ("iiMedia Consulting | Bimonthly Report on China's Automobile Industry Operation Status and Corporate Business Situation from September to October 2020" full high-definition PDF version has 48 pages. You can click the report download button at the bottom of the article to download the report)

Core viewpoint

Macroeconomic recovery Recovery stimulates the continued improvement of the automobile market

From the perspective of industry development trends, commercial vehicles will continue to maintain a growth trend in the fourth quarter, driven by policies and investment; in terms of passenger cars, the Beijing International Auto Show that opened in late September promoted The comprehensive launch of the company's new products, coupled with the continuation of consumption policies in various places, will have a positive impact on the automobile market.

html The sales of new energy vehicles are improving from 49 to October, and it is expected that new energy vehicles will continue to strengthen.

html In September, the production and sales of new energy vehicles increased significantly month-on-month and year-on-year. The "Golden Nine" was in good condition, and production and sales both hit record highs; The wholesale sales of energy passenger vehicles exceeded 144,000 units, a year-on-year increase of 119.8% and a month-on-month increase of 15.9%. To further guide new energy vehicles into a healthy development track, iiMedia analysts believe that in the medium to long term, new energy vehicles will continue to contribute incremental growth.

The "Golden Nine" broke out and the "Silver Ten" was strong, and the auto market is expected to continue to be prosperous in the fourth quarter.

In the third week of October, the average daily retail sales of domestic passenger cars was 53,000 units, a year-on-year increase of 18%, and the sales volume increased by 8% compared with the same period in September. In the first three weeks of October, the average daily retail sales of domestic passenger cars was 42,000 units, a year-on-year increase of 16%, and sales increased by 3% compared with the same period in September, showing a strong trend. In the "Golden Nine and Silver Ten" sales season, the domestic auto market has delivered results that exceeded expectations.

The following is an excerpt from the report

Hot trends in the global automotive industry from September to October 2020 (1)

Hot trends in the Chinese automotive industry from September to October 2020 (1)

Analysis of China’s automotive industry output as of October 2020

Data show, 2020 In October 2020, China's automobile production was 2.552 million units, a month-on-month increase of 0.9%, and a year-on-year increase of 11.0%. China's cumulative automobile output from January to October 2020 was 19.519 million units, a year-on-year decrease of 4.6%. Compared with January to September, narrowed by 2.1 percentage points. iiMedia Consulting analysts believe that automobile production dropped slightly month-on-month from July to August, mainly caused by the reduction in commercial vehicle production. However, overall, with the continued recovery of consumer confidence, the combination of Double Eleven, auto shows and new Driven by activities such as bringing energy to rural areas, the recovery of market demand will remain stable and positive.

Data analysis of complaints hot spots in China's automobile industry in October 2020

The number of automobile complaints exceeded 8,402 in October 2020. Among them, Chinese self-owned brand cars accounted for the highest proportion of automobile complaints, reaching 43%, followed by Japanese, American and German cars. A total of 6 models in the top ten on the list in October are from the Volkswagen brand. Among them, the two main sales models of FAW-Volkswagen Sagitar and Magotan are the top two on the list. FAW-Volkswagen Sagitar complained this month The volume increased again month-on-month, ranking first in the monthly complaint list for three consecutive months. In addition, the number of complaints about pure quality issues in October decreased compared with September, but the proportion of complaints increased by 4 percentage points.

Analysis of China's passenger car market production from September to October 2020

Data show that the production of passenger cars in October 2020 was 2.064 million units, an increase of 6.8% year-on-year in October 2019 and a month-on-month increase of 0.4%. Recently, some foreign regions have restarted measures such as city closures due to the second outbreak of the epidemic. However, the domestic epidemic situation has stabilized, the economy continues to pick up, and residents' consumer confidence and purchasing power have recovered. Therefore, the recovery of the auto market continues to be strong. iiMedia Consulting analysts believe that as consumption promotion policies in many places are about to expire in December, the last-minute effect of car-buying policies on consumers is quite obvious.

Data analysis of China’s passenger car market pattern in October 2020

Data shows that the overall pressure on China’s independent brands of passenger cars is still high. Retail sales in October increased by 6.2% year-on-year, an increase of 14% from September, and the market share was 37.6%, compared with the same period in the same period. Share fell by 0.3%. iiMedia Consulting analysts believe that the macro-economy and export market have recovered beyond expectations, especially China's export performance against the backdrop of the epidemic in Europe and the United States, which has stabilized consumer confidence and led to growth in the performance of many independent car companies. The second outbreak of the epidemic in Europe has little impact from the perspective of the supply chain, but it is still a blow to some brands. The current production and sales of some manufacturers are very tight, and dealers' orders are difficult to grow as scheduled, which will inevitably affect their sales growth rate. And transmitted to the terminal price promotion efforts.

The development of typical car companies from September to October 2020: FAW-Volkswagen (1)

FAW-Volkswagen (FAW-Volkswagen Co., Ltd.) is a large passenger car manufacturer, consisting of China FAW Group Co., Ltd. and Germany's Volkswagen It is a large-scale sedan manufacturer jointly operated by Automobile Co., Ltd., Audi Automobile Co., Ltd. and Volkswagen (China) Investment Co., Ltd. It was established on February 6, 1991 and is headquartered in Changchun, Jilin. It is the first company in China to start based on economic scale. The modern sedan industrial base under construction mainly produces the two major brands of Volkswagen and Audi under the Volkswagen Group.

The development of typical car companies from September to October 2020: Tesla (3)

Data shows that on September 24, Tesla’s Internet popularity reached its peak. This was mainly related to the changes in US stocks that day, Tesla It fell nearly 3% before the market opened due to the lawsuit against the US government. In October, Tesla's popularity remained high due to a series of events such as the Model S price cut, the Model Y recall, and the release of its third-quarter financial report, which attracted widespread attention and discussion.

Summary of corporate dynamics in China's automobile industry from September to October 2020 - policy support

Summary of development of China's automobile industry from September to October 2020 (1)

Favorable policies promote the stable development of the new energy industry

The executive meeting of the State Council of China passed the "New Energy "Automobile Industry Development Plan (2021-2035)" clarifies the development direction of the new energy automobile industry in the next 15 years. The "Plan" emphasizes the importance of technology and proposes to "increase research on key technologies and promote deep integration of industries". It also proposes to increase policy support for the use of new energy vehicles in public services, which will greatly promote China's new energy vehicles. The market is booming, and leading new energy car companies represented by BYD are expected to gain greater advantages.

The recovery of the macroeconomic environment has stimulated the continued growth of the automobile market.

Judging from the development trend of the industry, commercial vehicles will continue to maintain a growth trend in the fourth quarter driven by policies and investment. In terms of passenger cars, the Beijing International Auto Show, which opened in late September, has promoted the comprehensive launch of new products by companies, and the continuation of consumption-promoting policies in various places will have a positive impact on the automobile market.

Analysis of the Development Trend of China's Automobile Industry in 2020

The "Golden Nine and Silver Ten" peak consumption season has achieved remarkable results, and new energy has maintained a positive development trend.

html In September, the production and sales of new energy vehicles increased significantly both month-on-month and year-on-year. The "Golden Nine" peak season is full of quality. At the same time, both production and sales hit a record high, marking that the new energy vehicle field has returned to the track of growth. With the gradual reduction of subsidies and the introduction of subsequent relevant support policies, new energy vehicles will be further guided into a healthy development track, iiMedia Analysts believe that in the medium to long term, new energy vehicles will continue to contribute incremental growth.

China's automobile market has entered a stage of low-speed growth

Currently, China's automobile production and sales have accounted for nearly one-third of the global automobile market, becoming the most important market position for domestic and foreign automobile companies. After experiencing a slight decline and fierce competition in 2019, China's automobile industry is facing transformation and upgrading in 2020, and competition will become more intense. The current cycle of rapid growth of China's economy as a whole has completed its historical mission, and the development model of the automobile market has also shifted from high-speed growth to medium-speed growth, or even to a low-speed growth stage.

Part of the data and pictures in this article are excerpted from the "Bimonthly Report on China's Automotive Industry Operation Status and Corporate Business Situation from September to October 2020" released by iiMedia Research Institute. To view more industry research reports, please click "Learn More" below.