August Passenger Vehicles: Domestic Brands Compete Overseas, New Forces Surge Ahead, Joint Ventures Fight Back in New Energy

As August came to an end, many car manufacturers took the opportunity to release their performance reports on the first day of September (September 1). Driven by favorable policies and the release of consumer demand, the car market in August showcased numerous highlights. Among them, domestic brands remain the main force in the current market, and some new energy brands have also achieved record-high deliveries. In contrast, only a few luxury and joint venture brands released sales figures, resulting in relatively low visibility.

Overseas is gradually becoming a "new battleground" for independent competition.

In August, BYD, SAIC, and FAW each sold more than or close to 300,000 vehicles, while Geely, Chery, and Changan all exceeded 230,000 units, ranking among the industry's leaders. It is worth noting that with increasing competition in the domestic market, the overseas market is becoming the new focus for independent brands' competition following the new energy sector.

As a leading company in the new energy vehicle industry, BYD's sales in August remained stable at a high level of 370,000 units, with a cumulative sales volume of 2.864 million units from January to August. In comparison, its overseas market sales in August increased by 146.4% year-on-year to 80,000 units, with a cumulative sales volume exceeding 630,000 units in the first eight months. Given BYD's annual sales target of 5.5 million units and 800,000 units overseas, its overall sales target is clearly under pressure, but there is potential for surpassing the target in the overseas market.

SAIC has also placed the overseas market, self-owned brands, and new energy vehicles as the "new troika" for deepening reforms and advancing transformation. In August, SAIC's overseas sales reached 88,000 units, a year-on-year increase of 10.5%; new energy vehicle sales reached 130,000 units, a year-on-year increase of 49.9%; and self-owned brand sales reached 232,000 units, a year-on-year increase of 49.5%, becoming the main pillar of the group.

Certainly, in terms of overseas market strength, Chery is undoubtedly No.1. In August, Chery exported 129,000 vehicles, a year-on-year increase of 32.3%. It not only exceeded 100,000 exports for four consecutive months but also set a new record for single-month exports, continuing to maintain its position as the top Chinese automobile exporter. In the first eight months, Chery's cumulative exports reached 799,000 units, a year-on-year increase of 10.8%. At the same time, Chery also performed well in the new energy sector, with sales in August increasing by 53.1% year-on-year to 71,000 units.

In contrast, Geely's performance in the new energy sector is more impressive. Its new energy vehicle sales in August reached a record high of 147,000 units, a year-on-year increase of 95%; cumulative sales for the first eight months have exceeded one million units. This has made Geely the automaker with new energy vehicle sales second only to BYD, highlighting the gradual emergence of the aggregation effect of Geely's "One Geely" strategy under the "Taizhou Declaration."

In addition, Changan Automobile released its sales figures for the first month after being listed as a new central enterprise on July 29. In August, Changan sold 233,000 vehicles, including 88,000 new energy vehicles and 56,000 overseas sales. Great Wall sold 116,000 vehicles in August, achieving its best-ever August sales performance.

The new forces continue to surge ahead.

New energy vehicle brands continued to show an upward trend in August. Among them, Leapmotor achieved a new monthly sales high for new energy brands with 57,000 units, maintaining its lead in the sector. Meanwhile, HarmonyOS Intelligent Driving sold nearly 50,000 units in August, and XPeng, NIO, and Xiaomi each exceeded 30,000 units.

Thanks to the intensive launch of highly competitive new products such as B01, the new C11/C16/C10, and B10, Leapmotor's sales have been continuously rising this year. At the current growth rate, Leapmotor is expected to challenge the 60,000 monthly sales mark in September. The second-ranking Hongmeng Intelligent Mobility currently mainly relies on the performance of the AITO brand, with August sales reaching 40,012 units, accounting for 90% of Hongmeng Intelligent Mobility's sales. With the gradual market entry of new models like Zhijie, Xiangjie, and Zunjie, Hongmeng Intelligent Mobility may experience a new surge.

Xpeng and NIO both set new sales records in August. Xpeng launched the all-new P7 ahead of the Chengdu Auto Show, and with the new model receiving over 10,000 orders within just seven minutes, its strong momentum is expected to further boost Xpeng’s future sales. For NIO, the main driver of sales growth came from the delivery of its sub-brand, Le Dao’s L90. In its first full month of deliveries, the new vehicle surpassed 10,000 units, ranking among the top in the mid-to-large SUV segment.

Thanks to the large number of orders received when the YU7 was launched, Xiaomi’s sales exceeded 30,000 units for the second consecutive month. As for Li Auto, although it was the only leading new energy brand that did not surpass 30,000 units, its August sales still had highlights. The MEGA model delivered over 3,000 units in that month, becoming the best-selling pure electric MPV. In addition, among new brands from traditional automakers, both Deepal and Aion achieved sales close to 30,000 units in August.

Joint venture counterattack on new energy

Some analysts believe that with the rapid rise of new players, especially the aggressive expansion of high-end new energy vehicles, the former leaders of the luxury car market—Mercedes-Benz, BMW, and Audi (BBA)—have been showing a steady decline in the Chinese market. A recently circulated weekly sales report for the luxury car market also shows that the AITO M8 has topped the list for several consecutive weeks in August.

Although the data source of this ranking cannot be confirmed, the official sales figures released by BBA in China also reflect the difficulties they are currently facing. Data shows that in the first half of this year, Mercedes-Benz, BMW, and Audi delivered 293,200, 318,100, and 288,700 vehicles respectively in China, all experiencing double-digit year-on-year declines.

However, it is worth noting that since the beginning of this year, new models from BBA's all-new electric platforms have been rapidly launching, such as the CLA from Mercedes' MMA platform, the iX3 from BMW's Neue Klasse platform, and the Q6L e-tron from Audi's PPE platform (which was launched in August). Whether the arrival of these new cars can reverse BBA's current downturn in the new energy sector remains to be seen.

Apart from BBA, joint venture brands have also been continuously impacted by domestic brands, including new forces, in recent years. As a result, in the monthly sales "big comparison" on the first day of each month, joint venture brands tend to remain silent. However, as a leader among joint venture brands, FAW-Volkswagen's performance in August is still commendable.

According to the data, FAW-Volkswagen achieved total vehicle sales of 135,800 units (including imported vehicles) in August, a year-on-year increase of 4.2%. Among them, the Volkswagen brand sold 79,000 units, up 1.9% year-on-year; the Audi brand, driven by the momentum of new product launches, recorded sales of 45,800 units (including imported vehicles), ranking first in market share for domestically produced luxury fuel vehicles.

Regarding the Jetta brand, on August 28, FAW Group, Volkswagen Group China, and Chengdu Economic and Technological Development Zone officially signed the "Jetta Business Development Cooperation Agreement" to promote its electrification transformation. This initiative not only inaugurates a new model of government-enterprise joint venture but also will help FAW-Volkswagen accelerate its layout in the entry-level intelligent electric mobility market.

Whether it is the continuous strengthening of traditional independent brands in the new energy and overseas markets, the sustained rise of emerging brands, or the vigorous efforts of joint venture brands, all have injected new vitality into the passenger car market in August. With the arrival of the traditional sales peak season of "Golden September and Silver October," as well as the ongoing implementation of stimulus policies across various regions, future competition in the car market is expected to become more intense, and the market landscape is likely to be further reshaped.