1. Overview of the Passenger Car Market in May
In May, the passenger car market saw increasing weekly demand, with order volumes rising significantly month-on-month but declining 10% year-on-year. The gasoline car market performed poorly, while the new energy vehicle (NEV) market showed mixed results.
The ongoing price war continued to influence the market, with brands like Tesla and Huawei boosting sales through promotional activities. New car releases increased, especially in Beijing and Shanghai.
BYD introduced multiple new models and plans to release 14 more by the end of the year.
2. Brand Performance
Changan Automobile
- Changan Deep Blue sales surged due to new models and pricing strategies. The upcoming G318 model is expected to further boost sales. Models like S7 and S5 are enhancing market competitiveness through price discounts and new releases.
- The G318 model has design flaws, potentially underperforming expectations.
Tank Brand
- The Tank brand performed strongly in the hardcore SUV market, with stable sales and firm prices. Models like Tank 300 hold significant market positions.
Li Auto
- Li Auto L6 showed strong sales, accumulating 50,000 orders with an expected monthly sales of 20,000 units. Sales of L7, L8, and L9 declined but remained stable overall.
Xpeng Motors
- Xpeng’s motorcycle model is expected to debut in June, targeting the 150,000 yuan market segment with high intelligence levels, likely impacting the market significantly.
BYD
- BYD’s May sales exceeded 330,000 units, with strong domestic demand and notable order increases in Beijing.
- BYD faces low channel inventory pressure, maintaining reasonable overall stock levels.
- The average transaction price dropped after the launch of the Glory Edition, but overall sales remained strong. New model releases are expected to positively impact the market.
- The fifth-generation DMI models showcase significant technological advantages, expected to significantly influence the market.
- The NEV rural promotion policy is positively impacting BYD and the entire industry.
NIO
- NIO’s May sales reached 20,000 units, with a slight decline expected in June.
3. New Models and Future Outlook
The LeDo L60 model is gaining traction, with deliveries starting in September and a year-end monthly sales target of 2,000 units. The Firefly brand is expected to launch in 2025, primarily targeting the European market.
10. Policy Impact
NEV rural promotion and replacement policies positively impact the market, likely increasing NEV market share.
11. Other Brands
- Xiaomi’s SU7 model accumulated over 100,000 orders, with an expected annual delivery of 120,000 units.
- Leapmotor’s May sales reached 18,000 units, with June sales expected to exceed 20,000 units.
Q&A
Q: How was the heat in the passenger car market in May? A: The market heat increased weekly, with order volumes rising from 74,000 to 88,000 between the second and fourth weeks, a 12% month-on-month increase. However, the last week of May saw a 10% year-on-year decline. The gasoline car market was weak, while NEVs showed mixed results. The price war and new product launches influenced market demand, though consumer hesitation was evident.
Q: What was the impact of the price war on the passenger car market in May? A: The ongoing price war, extending for five months this year compared to three months last year, significantly impacted the market. Companies like Tesla and Huawei attracted market attention through rights adjustments and limited promotions. New product launches, such as BYD’s 99,800 yuan DM model, are expected to alleviate consumer hesitation. Although the large-scale price war is ending, its effects will continue into mid-June.
Q: How did different brands perform in May? A: Several brands performed well in May. Changan’s Deep Blue series saw significant growth due to the S7 model’s upgrade and substantial promotional efforts. Future models like G318 are expected to further boost sales. Tank series models maintained strong sales and stable prices. Li Auto’s L6 model accumulated 50,000 orders, with stable sales for L7, L8, and L9 models. Xpeng’s new motorcycle model is expected to impact the market significantly. BYD’s May sales exceeded 330,000 units, with strong domestic demand and low inventory pressure.
Q: What is the market performance and pricing strategy for Changan’s new cars? A: Changan’s new cars have a long preheat period, spanning from the Beijing Auto Show to the May 1st local auto show. The new model’s market positioning is urban crossover and light off-road, priced between 150,000 and 200,000 yuan. Its design, especially the front lines, is not perfect, making it less likely to become a major hit unless priced competitively.
Q: How did the Tank series perform and what is the future outlook? A: The Tank series performed well with stable prices, covering multiple models priced between 200,000 and 400,000 yuan. The series caters to off-road enthusiasts and continues to maintain high growth in the third and fourth quarters.
Q: What is the order and delivery status of Li Auto’s L6 model, and what is the future sales outlook? A: Li Auto’s L6 model had about 50,000 orders by the end of May, with monthly orders around 20,000 units. The delivery target for June is 25,000 units, with overall challenges mainly related to production capacity.
Q: What are the key highlights of Xpeng’s new car, and what is its market positioning and competitiveness? A: Xpeng’s new car, set to debut in June, targets the 150,000 to 180,000 yuan pure electric market, emphasizing intelligence and refined interior craftsmanship. Its core selling points include intelligent systems and end-to-end assisted driving capabilities.
Q: What are the highlights of Xpeng’s B-class sedan, and what is its market positioning? A: The B-class sedan, priced around 180,000 yuan, fills the market gap between P5 and P7 models. Competing with BYD in this segment, it aims to leverage its intelligence and design to gain market share.
Q: How competitive is the new M7 model, and what are its current orders and delivery targets? A: The new M7 model has strong competitiveness with orders around 17,000 to 18,000. The target of delivering 20,000 units in six months, particularly in June, is achievable.
Q: Can Leapmotor’s C16 model surpass 20,000 sales after its launch? A: With May sales at 18,000 units, the launch of the C16 model is expected to boost sales beyond 20,000 units. Current competitive dynamics suggest minimal short-term threats.
Q: What is the order and delivery status of Xiaomi’s SU7 model? A: Xiaomi’s SU7 model has accumulated over 100,000 orders, with expected annual deliveries between 100,000 and 120,000 units. Current deliveries are around 10,000 units, with plans to increase production capacity.
Q: What are the weekly order and overall inventory levels for BYD in May? A: BYD’s May orders increased significantly, with Beijing stores seeing notable growth. Nationally, orders are also rising, driven by new model releases. Inventory levels are reasonable, with adequate stock for upcoming high delivery periods.
Q: How is BYD’s channel inventory pressure? A: From a Beijing dealership perspective, inventory is currently increasing to prepare for high delivery periods. National inventory levels are within a reasonable range.
Q: Will BYD’s average transaction price stabilize after recent declines? A: BYD’s average transaction price has been declining due to lower-priced models. Despite competitive pressures and new model introductions, dealerships’ profitability is expected to remain positive.
Q: What is your evaluation of BYD’s recently launched fifth-generation DMI models? A: BYD’s fifth-generation DMI models feature advanced hybrid technology, leading the market in efficiency and compatibility. These models are expected to significantly boost sales.
Q: Will monthly sales exceed 350,000 units? A: While new orders outpace production capacity, monthly sales are unlikely to reach 350,000 units due to production constraints.
Q: Where else will DMI technology be applied? A: BYD plans to apply DMI technology to all major models, including Song Plus, Seal, Han Tang, and Qin Plus. The introduction of second-generation blade batteries next year will further enhance market competitiveness.
Q: How competitive is BYD’s E platform and its first model Seal 07? A: The Seal 07 model, priced between 180,000 and 240,000 yuan, faces intense competition. While technologically advanced, its market performance may be weaker compared to DMI 5.0 models.
Q: How are BYD’s high-end models performing, particularly the City series? A: The City series maintains steady sales around 10,000 units monthly, but other high-end models show mixed performance, needing further market response evaluation.
Q: How competitive are BYD’s models priced above 200,000 yuan? A: BYD’s high-end models face strong competition and relatively weak brand power. Models like N7 and N8 underperform in sales, highlighting challenges in the 250,000 yuan and above market segment.
Q: What is the impact of the 2024 NEV rural promotion policy on BYD and the industry? A: The policy boosts the NEV market, benefiting companies like BYD that cover multiple market segments. It promotes NEV penetration in rural areas and complements replacement subsidies, increasing overall market share.
Q: How do replacement policies affect BYD and the terminal market? A: Replacement policies aim to stimulate consumption amid economic downturns. While immediate effects are limited, they prevent further market declines, supporting a gradual increase in NEV market share.
Q: What drove NIO’s strong sales growth in May, and what are the current weekly orders? A: NIO’s May sales were driven by policy incentives and model discounts. June’s delivery guidance expects a slight decline, with new orders around 4,300 units and 1,600 delivered so far.
Q: How has the purchase threshold changed, and what is the end-market attraction? What is the sales ratio for the 80 model? A: The BAAS model’s price dropped by 70,000 yuan, increasing market attractiveness. The 80 model accounts for 86% of sales, reflecting high market acceptance. The BAAS incentive policy will continue in June.
Q: What are the highlights of the new LeDo L60 model, and how competitive is it? A: The LeDo L60, with high cost-effectiveness and competitive pricing, is gaining significant interest. Pre-orders indicate strong market potential.
Q: How are the production and channel layouts for the LeDo L60? A: LeDo L60 shares production facilities with ET5 and plans for dedicated facilities. Its sales network will expand to 200 cities by year-end, focusing on traditional auto centers and experienced sales personnel.
Q: Will the LeDo L60 impact NIO’s main brand? How is the swap station utilization rate? Will the LeDo L60 share swap stations? A: The LeDo L60 will increase swap station utilization, currently at 44 swaps per day. It targets a different market segment, minimizing impact on NIO’s main brand. NIO will continue focusing on the high-end market, while LeDo L60 targets the mid-range.
Q: How is the test drive performance of NIO, and what is the visual solution for the LeDo L60? A: The L60 will offer high-end options like lidar. NIO’s visual solution, validated over 47 billion kilometers, shows strong performance, ensuring a mature product at delivery.
Q: What future models are planned for LeDo L60? A: LeDo plans a five-seat SUV, a larger three-row model, and an MPV, with designs targeting specific market needs.
Q: What are the highlights of the LeDo L60? A: The LeDo L60 offers high space utilization, superior to traditional fuel vehicles, with flexible battery arrangements and spacious interiors.
Q: When will the Firefly brand be released, and what are its highlights and price range? A: The Firefly brand will debut at the 2025 Shanghai Auto Show, targeting the 150,000 yuan segment. Initially launching in Europe, it will enter the domestic market six months later.
