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Benefiting from the global economic recovery, the automotive industry has been growing continuously since last year. Judging from the 2024 semi-annual reports released by listed companies recently, the automotive industry maintained a high level of prosperity in the first half of the year. Industry experts interviewed said that the continued outstanding performance of automobile exports and new energy vehicles in the first half of the year reflects the improvement of the global competitiveness of China's automobile industry in seizing the opportunity of electrification. Looking forward to the second half of the year, the old-for-new policy is expected to stimulate the release of automobile demand. At the same time, the automobile industry will enter the second half with intelligence as the core, further driving the industry's prosperity upward.

The reporter noted that as of August 22, 69 of the 289 listed companies in the automotive industry have announced their semi-annual reports, 50 of which have achieved positive growth in performance, 10 of which have achieved growth rates exceeding 100%, and 43 of which are in the automotive parts industry. Among them, Fuyao Glass, Sailun Tire and Top Group's net profit attributable to their parent companies ranked first, at 3.499 billion yuan, 2.151 billion yuan and 1.452 billion yuan respectively. Wencan Holdings, Shuanglin Holdings, Yingboer, Ninebot-WD, and Bojun Technology had the highest net profit growth rates, reaching 488.19%, 282.89%, 218.48%, 167.82% and 143.66% respectively.

Many automakers are seizing opportunities in overseas markets and actively exploring them. The auto industry continues to show a global development trend of expanding exports. According to data from the China Association of Automobile Manufacturers, the domestic market continues to show a global development trend of expanding exports. In the first half of 2024, auto companies exported 2.793 million vehicles, a year-on-year increase of 30.5%, and new energy vehicles exported 605,000 vehicles, a year-on-year increase of 13.2%.

In the first half of 2024, Great Wall Motors sold a total of 559,700 vehicles, a year-on-year increase of 7.79%. Among them, the company sold 201,500 vehicles overseas, a year-on-year increase of 62.59%, accounting for a significant increase in sales to 36%, a significant increase of 10.32 percentage points from 2023.

In the field of commercial vehicles, the overseas sales of domestic buses in the first half of the year were also outstanding. According to Yutong Bus, from January to June, the company sold a total of 20,600 buses, a year-on-year increase of 35.82%. Among them, from January to May, the company exported 4,921 buses, a year-on-year increase of 64.2%. Yutong Bus said that as the competitiveness of Chinese bus products continues to improve, the export sales of China's bus industry have increased year-on-year. Benefiting from this, the company's export sales have achieved a substantial increase, the proportion of export business has gradually increased, the sales structure has continued to improve, and the performance contribution has increased.

CITIC Securities Research Report believes that although the EU and Southeast Asian markets are under short-term pressure, as the South American and Middle Eastern markets gradually become new drivers of overseas growth, the research report believes that China's passenger car exports will continue to perform well, and it is expected that China's passenger car exports will reach 5.36 million units in 2024, a year-on-year increase of 29.5%. As the impact of the EU and South American tariff adjustments gradually passes, it is expected that exports will be significantly boosted in the second half of the year, bringing investment opportunities for related targets.

Gao Yinan, chief automotive analyst at Changjiang Securities, said in an interview with a Securities Times reporter that the overall growth of the automotive industry was steady in the first half of the year, and exports and new energy vehicles continued to perform well, reflecting the improvement of the global competitiveness of China's automotive industry in seizing the opportunity of electrification. The accelerated transformation of automotive electrification and intelligence has also driven the industrial upgrading of the upstream supply chain. The continuous introduction of new technologies and new products has also driven the supply chain to surpass the performance of the downstream.

Sailun Tire said in the announcement that the company's globalization strategy, technological innovation and brand building continued to show results in the first half of the year, and its products were recognized by more and more domestic and foreign customers, with overseas sales increasing by more than 30% year-on-year. The company said that it will continue to focus on the development strategy and continue to promote the site selection and demonstration of other bases, and the overseas production capacity layout will be further optimized.

Looking ahead to the second half of the year, Gao Yinan believes that the old-for-new policy is expected to stimulate the release of automobile demand. At the same time, the automobile industry will enter the second half with intelligence as the core, further driving the industry's prosperity upward.

Galaxy Securities also pointed out that thanks to the continuous improvement of the global reputation of Made in China, exports are expected to continue to be highly prosperous, driving the performance of the export industry chain to improve; in addition, the State Council meeting on July 19 proposed to increase subsidies for scrapped and updated vehicles, which may become an important contribution to the stable growth of domestic demand in the second half of the year. Passenger car OEMs with brand advantages and technological advantages have great sales growth potential, which also brings performance growth opportunities to the core parts supply chain.