The Zhitong Finance App learned that on July 11, Cui Dongshu released an analysis of the passenger car price segment market structure. According to the Passenger Federation data, the price segment sales structure trend in the national passenger car market continues to rise. The share of sales of high-end models has increased markedly, and the share of sales of medium- and low-price models has decreased. This is a driving force for consumption upgrades. At the same time, it is also due to consumption upgrades driven by exchange groups. The high-end characteristics of the car market consumption structure will be further strengthened in 2024. Retail sales in the passenger car market experienced a temporary slump after the Spring Festival in 2024. Domestic fuel vehicle retail sales resumed average in June, curtailing the growth of the car market, and export contribution support also declined.

Judging from structural analysis, the entry-level shrinks, the major problem is that the consumer base is not solid. The purchasing power of the middle and lower end is insufficient, and the price war has clearly broken out. The upward trend in the price segment of traditional fuel vehicles is not a favorable factor in boosting consumption; it is necessary for ordinary consumers to be more likely to buy entry-level cars. In other words, low-end consumption is very important. Therefore, it improves the purchasing power of ordinary people, achieves a relative balance on the price side of the car market, boosts entry-level consumption, and enables first-time buyers to start spending.

According to retail data monitoring in overseas markets exported by independent brands, the share of A0 class electric vehicles has reached nearly 50%, and they are the absolute main export force. Small electric vehicles of independent brands such as SAIC Motor performed well in Europe in the early stages, and were therefore subject to relatively targeted tax increases. This also shows that small and mini electric vehicles are the competitive core of the world's electric vehicles. We urgently need to guide the miniaturization of electric vehicles and encourage the development of small and mini electric vehicles, so that Chinese electric vehicles can continue to reach the world. As a type of fuel vehicle corresponding to pure electric zero-carbon models, plug-in hybrid models rely on the advantages of low fuel consumption and long battery life under the fuel level in overseas markets, and the performance of alternative fuel vehicles in overseas markets is becoming more and more prominent.

1. The lower the price of passenger cars, the more expensive

Car market prices have continued to rise in recent years. 2019 was 0.142 million yuan, 2020 was 0.153 million yuan, this year's cumulative average was 0.179 million yuan, and June was 0.186 million yuan. The main reason is that the price of hybrids and extenders is higher, which is a structural driver. At the same time, the average sales price of original fuel vehicles also increased, and the high-end fuel vehicles led to a significant increase in prices.

2. Passenger car market price segment sales structure

According to the retail data of the Passenger Federation, the price segment structure trend in the national urban market continues to rise. Sales of high-end new energy models have increased significantly, and sales of medium- and low-price models have declined.

The share of models under 0.05 million yuan continued to rise in 2021-2022 compared to 2020, mainly contributing to the sales volume of mini electric vehicles. However, it has continued to decline since 2023. The sales volume of models under 0.05 million yuan in 2024 is currently only 2.5%, down 0.7 percentage points from 2023. After the decline in sales of traditional models of 0.05-0.15 million was offset by the growth of new energy vehicles, the overall downward trend is still evident.

The market share of models over 0.15 million continues to rise, growing rapidly. Domestic retail sales of 0.2-0.3 million models accounted for 16.3% in 2023, compared to 21.1% in June this year. In recent years, the share of all segments of 0.3 million or more models has continued to rise. The retail share of 0.3-0.4 million models was 10.6% in 2023, 10.6% in June, 3.2% of domestic retail sales in 2023, and 3.9% in June this year. Independent high-end breakthroughs reflect the obvious trend of high-end development brought about by the growth of new energy sources for passenger cars.

3. Passenger car grade market sales structure

The highest penetration rate of new energy vehicles is small cars. The penetration rate of mini cars is 100%. A0 class small cars will exceed 70%, and A-class new energy will increase faster.

The new energy penetration rate of B-class cars and C-class cars has increased dramatically, reflecting the obvious advantages of high-end electrification.

The increase in the new energy penetration rate of high-end vehicles mainly reflects the trend of autonomous improvement.

4. New energy vehicle structure for passenger cars

Domestic retail sales of pure electric new energy vehicles have continued to grow at a high rate. The mixed performance has been outstanding in the past three years, and the growth rate has continued to grow slightly. Sales of traditional passenger cars are under continuous downward pressure.

In 2023, the share of new energy vehicles reached a strong proportion of 36%. The penetration rate of new energy vehicles in June 2024 was 49%, and the contribution of new energy vehicles will increase slightly in the future.

5. Price and sales structure of various types of power in 2024

Currently, the national passenger car market of 50,000 to 150,000 yuan is a characteristic of the core main model market. This is mainly due to the fact that traditional fuel vehicles account for a relatively high share. There is a big difference between traditional cars and new energy vehicles, while the structure in plug-in hybrids is relatively concentrated in the mid-range.

6. Sales structure of internal dynamics in each price segment in June 2024

Within the price segment market, the distribution of power is relatively uneven. Among them, pure electric performance is the strongest in the market below 50,000 yuan, while extended-range electric vehicles have the strongest performance distribution in the high-end market, while hybrids are relatively strong at 200,000 to 300,000 yuan.

Traditional fuel vehicles have a relatively strong performance of 100,000 to 200,000 yuan, forming the characteristics of differentiated distribution. In particular, the distribution of hybrid power is relatively narrow. Products belonging to the middle to high price range are mainly, while plug-in hybrids are the main mainstream models. The low-end market contracted more severely at the beginning of the year. This is also because the impact of weak consumption had a greater impact on the low-end.

7. Conventional fuel passenger vehicle structure

The high-end product structure of traditional fuel vehicles is obvious, mainly due to the high growth rate of more than 150,000 models. This is a direct reflection of consumption upgrades. However, fuel vehicles under 100,000 are declining rapidly. Under the high growth of pure electric vehicles, low-cost fuel vehicles are characterized by a sharp decline.

8. Changes in the product structure of pure electric vehicles - high-end growth is greater

As the cost of pure electric vehicles falls and product increases, electric vehicles under 50,000 yuan and electric vehicles over 300,000 yuan have performed relatively steadily. Among these, Tesla is still listed above 200,000, preventing structural fluctuations too much.

Currently, the share of electric vehicles worth 10-15 thousand yuan has declined. Some of these electric vehicles are the main players in online rental contracts, etc., and the A-class electric vehicle market trend has not been strong in the past two years. As the price of lithium carbonate falls, there is still great potential for new energy growth at the level of 200,000 to 300,000 yuan.

9. Changes in plug-in hybrid product structure -- significant increase in mid-range and high-end

The increase in plug-in hybrid models is mainly in the low price range. After autonomous plug-in hybrid technology matures, it has gained a large share in the medium to low price market.

10. Extended range product structure changes - high-end performance is very strong

As a branch of pure electric power, the Extended Range has been put into the hybrid. Currently, its performance continues to improve, and both high-end and 150,000 yuan products are strong.

11. Ordinary hybrid products - changes in high-end share

The share of the hybrid car market also continues to rise. The supply improvement in 2024 led to a gradual increase in share. Market demand driven by policies has turned mixed, and hybrid market performance is average.

12. Changes in product shares of various car companies

Independent brands performed well in 2024. New energy sources were fully effective, and growth and mixing performance were excellent. Overall, the advantageous regions of new energy are more prominent in high-end oil and electricity hybrids brought about by independent innovative technology. The structure of the new forces fluctuates greatly, and the growth rate is relatively good.