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Recently, the China Passenger Car Association released the latest retail sales data. In July this year, the retail sales of the domestic narrow passenger car market reached 1.72 million vehicles, a year-on-year decrease of 2.8% and a month-on-month decrease of 2.6%. Referring to the sales data of previous years, July is generally the lowest point of normal monthly sales after February, but this year, due to changes in the car-buying population and changes in new energy channels, the seasonal rhythm of the market has weakened, gradually showing a trend of "off-season is not off-season".

It is worth mentioning that the new energy vehicle market showed a good growth momentum in July, with retail sales of 878,000 vehicles. The monthly retail penetration rate exceeded 50% for the first time, reaching 51.1%, an increase of 15 percentage points over the same period last year. This achievement was achieved thanks to the national "old for new" passenger car scrapping and renewal policy and the corresponding policy follow-up of local governments.

In terms of specific vehicle models, sedan sales in July were 788,000 units, down 6.6% year-on-year; MPV sales were 84,000 units, down 10.2% year-on-year; SUV sales were 848,000 units, up 1.9% year-on-year; NEV (new energy vehicle) sales were 878,000 units, up 36.9% year-on-year.

Although sedans, MPVs and SUVs showed a small decline, referring to the month-on-month and year-on-year sales of passenger cars in July in previous years, the month-on-month decline in overall passenger car sales this year was lower than the same period in history. Taking July 2023 as an example, the month-on-month decline was 2.3% and the month-on-month decline reached 6.3%. It can be predicted that after the traditional off-season, passenger car sales in the "golden September and silver October" are expected to exceed expectations.

In terms of brand camps, domestic brands sold 1.06 million vehicles in July, up 13% year-on-year and 3% month-on-month; mainstream joint venture brands sold 440,000 vehicles, down 25% year-on-year and 8% month-on-month. Among them, German brands had a retail share of 17.6%, down 2.9 percentage points year-on-year. Japanese brands had a retail share of 12.9%, down 3 percentage points year-on-year. American brands had a market share of 5.8%, down 1.9 percentage points year-on-year; luxury car sales were 220,000, down 11% year-on-year and 14% month-on-month.

BYD continues to hold the top spot in sales, with retail sales of 311,804 vehicles in July, up 35.0% year-on-year, accounting for 18.1% of the market share. Geely surpassed FAW-Volkswagen to become the second, and SAIC Volkswagen also surpassed Changan Automobile to become the fifth. In addition, SAIC-GM-Wuling and Ideal Auto are newly listed, ranking ninth and tenth, while Tesla China and others have dropped out of the list. From the list, there are 5 domestic brands and 5 joint venture brands, of which the top five include 3 domestic brands.

In terms of sales data, joint venture brands, except FAW Toyota, have experienced varying degrees of year-on-year decline, while domestic brands, except Changan, have achieved year-on-year growth. With the rapid development of the domestic automobile industry, domestic brands have made great progress in styling design, materials, workmanship and vehicle quality, and have also gained more recognition and favor from consumers. The barriers built by joint venture brands are gradually being broken by domestic brands.

In addition, the fact that Tesla China is no longer on the list and Ideal Auto is on the list also shows that the new forces in car manufacturing have slowly caught up with and surpassed the former domestic electric vehicle overlords by continuously launching new cars, recognized technologies and services. The domestic new energy vehicle market has entered a new stage of conquering the market with strength.

From January to July this year, BYD still leads the market with sales of 1,700,262 units, a year-on-year increase of 22.7%, accounting for 14.7% of the market share. As for other brands, the rankings from 2nd to 8th have not changed, but Brilliance BMW surpassed Dongfeng Nissan to become 9th.

Specifically, FAW-Volkswagen sold 885,693 vehicles, down 10.2% year-on-year; followed closely by Geely Auto, with sales of 877,309 vehicles, up 30.2% year-on-year. Changan Automobile ranked fourth with sales of 736,265 vehicles, down 1.7% year-on-year; SAIC Volkswagen and Chery Automobile were not far behind, selling 599,091 and 597,292 new vehicles respectively. Although the sales of the two were close, there was a huge difference year-on-year, with SAIC Volkswagen down 5.3% year-on-year, while Chery soared 67.5%.

At present, due to the rapid popularization of new energy vehicles, the fuel vehicle market is constantly being eroded, and this market is still the focus of joint venture brands, which has become one of the reasons for their declining market share. Independent brands can listen to the voice of consumers, cater to their needs for new energy and smart technology, and introduce new products. However, the products of joint venture brands are relatively slow to update and the degree of product intelligence is relatively weak. In order to maintain sales, some brands choose to reduce prices for promotions, but this is not a long-term solution. Joint venture brands still need to adjust their product strategies and cater to market demand to enhance brand competitiveness.

In the July retail sales list of new energy vehicles, BYD Auto also retained the championship with an absolute advantage, with sales of 311,804 units that month. This is the fifth consecutive month that its monthly sales have exceeded 300,000 units, and its market share has increased to 35.5%.

Since the launch of models equipped with the fifth-generation DM system this year, BYD's competitiveness has been further enhanced. Among them, the Qin model has contributed more than 70,000 units, and the recently launched Song L DM-i has also achieved sales of more than 10,000 units.

Geely Auto ranked second, with sales of 57,223 vehicles in July and a market share of 6.5%. Currently, Geely's Geely Galaxy continues to improve its pure electric and electric hybrid product matrix, and Zeekr Auto focuses on the high-end pure electric market. In the high-end luxury field, Zeekr Auto has performed stably, delivering 15,655 vehicles in July, a year-on-year increase of 30%. From January to July, Zeekr's delivery volume this year has reached 103,525 vehicles, a year-on-year increase of 89%.

Ideal Auto rose two places to 3rd place, with sales of 51,000 units in the month, up 49.4% year-on-year, and a market share of 5.8%. Among them, Ideal L6 is the brand's best-selling product. The sales of the car have been rising steadily since its launch, and the delivery volume has exceeded 20,000 units for two consecutive months, including July. The recognition of consumers and the market lies in the fact that the space, power and intelligent performance of Ideal L6 are more in line with household needs. At the same time, the price of no more than 300,000 yuan is more affordable than other products of the same brand.

As for other brands, except for Tesla China, which ranked 4th, and SAIC-GM-Wuling, which ranked 6th, the rest are domestic brands. Leapmotor, ranked 10th, achieved a record high sales of 22,093 vehicles in July. The brand currently focuses on extended-range electric vehicles, and low prices and high configurations have become the selling points of the brand's products. It is also expected to maintain its advantages and continue to sell well.

In recent years, the competition in the domestic automobile market has become increasingly fierce, from products to technology to prices. In particular, the widespread popularity of independent brands in the fields of intelligence and smart driving has further increased the pressure on joint ventures and luxury brands, and gradually occupied the market. In August, although the market competition trend remained severe, some luxury brands stated that they had readjusted their corporate development routes and paid more attention to brand culture. Therefore, in the face of a changing and complex environment, consumers will have a serious wait-and-see attitude. However, at the Chengdu Auto Show, which will open at the end of August, the efforts of automakers to introduce new products will reach a peak, and consumer demand may be released at that time.