Jingu Financial News | Citic Lyon said that the market share of Chinese automakers continues to rise. Sales and market share growth of original equipment manufacturers (OEMs) in the Chinese auto market reported in the first half of 2024 have been good. Looking back at the Chinese auto market from the beginning of the year to now, the bank found that domestic demand is relatively stable compared to the same period in 2022/23, while exports have driven the growth of passenger vehicle (PV) sales. By department, BYD is far ahead in the mass market, while competition in the high-end market is more intense.
Looking ahead to the second half of the year, the price war is expected to continue; however, due to the difficulty of joint venture automakers' fuel-powered vehicles competing with BYD's hybrid models, especially with BYD's huge cost advantage, the bank predicts that the price war in the mass market (below 200,000 yuan) will ease, and the market share of joint venture OEMs will rapidly decline; in the high-end market (above 200,000 yuan), due to the launch of many competitive new models and the continued high awareness of foreign luxury brands, the price war will intensify in the second half of 2024 and the first half of 2025. End-to-end big model of autonomous driving navigation (NOA) may be the key catalyst for this segmented market.
The reshuffle period in the current auto market will continue for another 2-3 years, with more room for growth in market share of leading domestic new energy vehicle companies. Except for BYD (01211), Ideal (LI US), Nio (NIO US), and Xiaopeng (XPEV US) are all worth paying attention to.