The ET7 helps NIO to a new monthly volume record in June.
After diving -47.6% in April and -12.6% in May due to Covid lockdowns, the Chinese new wholesales market bounces back up 23.8% year-on-year in June to 2,502,000 units according to the China Association of Automobile Manufacturers (CAAM). This is due to the end of a two-month lockdown in Shanghai and a temporary tax incentive to boost sales. The vehicle purchase tax was halved to 5% for new gasoline light vehicles with engine sizes of up to 2 litres and priced at 300,000 yuan or less (US$44,400 or 43,500€). This covers the vast majority of light vehicles sold in China. This tax incentive has been used before by the central Chinese government to boost sales: notably in 2009 and 2015 when it covered vehicles with engine sizes of up to 1.6 litres – but was surprisingly ignored in 2018-2020 when the market endured almost two years of monthly year-on-year declines up to the pandemic. We are therefore potentially witnessing the strongest ever incentive push on light vehicle sales by the Chinese government.
Passenger Vehicle sales are up a hefty 41.2% year-on-year to 2,222,000 units whereas Commercial Vehicles continue to suffer at -37.4% to 281,000 units. Exports shoot up 57.4% year-on-year to 249,000 units including 198,000 Passenger Vehicles (+65.6%) and 51,000 Commercial Vehicles (+32.4%). China-branded Passenger Vehicles continue to gain market share in June, up to 44.8% of the market thanks to 994,000 sales vs. 44.2% a year ago. The New Energy vehicle segment is euphoric at +130% year-on-year to 596,000 wholesales.
Honda (+31.1%) also trails the Passenger Vehicle market despite solid performances by the Accord (+553.2%), Avancier (+302.5%), Civic (+72%), Inspire (+58%), CR-V (+49.1%) and the new Integra. Most interestingly, Honda is now threatened for the third place (7,000-unit gap) by local fare BYD which continues to align records and surreal gains month after month. The brand is up 166.2% year-on-year to a new record monthly volume of 132,497, smashing its previous best of 113,903 established just last month. The Han (+200.6%), Yuan Plus (16,553) and Destroyer 05 (7,397) all break their volume record while the Tang (+156.8%), Yuan Pro (+142.3%) and Song PLUS (+121.3%) also in great shape. Changan (+20.5%) closes the Top 5 brands above Nissan (-4.9%) while Tesla (+135.1%) leaps up 10 spots on last month to #7, keeping in mind its volume includes exports.
Wuling (+44.3%) and Audi (+39.5%) also manage great lifts in the remainder of the Top 10 but Geely (-10.5%) struggles and falls to #9 vs. #6 so far this year. GAC (+56.1%) also shines at #14 above Haval (-28.2%) in difficulty. As for New Energy startups, it’s a very fruitful month with Xpeng up 133% year-on-year, Neta up 155.6%, LI up 68.9%, NIO (+60.3%) breaking its all-time monthly volume record at 12,961 while Leap Motor (+185.7%) does the same at 11,259. Geometry is up 567.5%, just as newcomer and Huawei-powered AITO is at an all-time best of 7,021 wholesales. Notice also Skoda (+136.8%), Citroen (+107.8%), TANK (+99.1%) and Venucia (+93.6%) all roughly doubling their year-ago score. At the other end of the scale, Baojun (-69%) crumbles to #47 vs. #25 year-to-date.
Looking at the models ranking, we have a semi event in pole position: the Tesla Model Y (+348.7%) takes the overall lead for the first time but this is mitigated by the fact it includes export volumes. The Nissan Sylphy (-3.2%) follows and manages to keep the Wuling Hongguang Mini EV (+32.2%) at bay. The Toyota Corolla (-1.3%) is down year-on-year but rallies back up 40 spots on May to land at #4 overall. The BYD Song Plus (+121.3%) is down two ranks to #5, distancing the VW Lavida (+70.3%) and Bora (+53.6%). The Tesla Model 3 (+19.8%) is up 20 spots to #8 while the BYD Han (+200.6%) and Honda CR-V (+49.1%) round out the Top 10. Helping the brand to a new monthly record, the NIO ET7 gears up 154.8% month-on-month to a new high of 4,349 wholesales.
Full June 2022 Top 96 All-brands and Top 470 All-models below.