China’s auto market gets off to robust start in Q1 2024 as production and sales both exceed 6.6 million units

China's auto market got off to a robust start in the first quarter of the year, with car production and sales both exceeding 6.6 million units during the period, data from the China Association of Automobile Manufacturers (CAAM) showed on Wednesday.

Between January and March, the production of automobiles increased by 6.4 percent year-on-year to reach 6.6 million units, while the sales of automobiles were up by 10.6 percent year-on-year to reach 6.72 million units, according to the CAAM.

"Overall, the country's car production and sales recorded rapid growth in the first quarter, with passenger vehicles and commercial vehicles both posting sound results. The market penetration of new-energy vehicles (NEVs) stays above 30 percent, whereas car exports remain at a high level, playing an active role in driving the industry's continuous growth," Chen Shihua, deputy secretary general of the CAAM, said on Wednesday, China Central Television (CCTV) reported.

During the period, the country's car exports jumped by 33.2 percent from a year earlier to reach 1.32 million units.

As a pillar industry for the national economy, the auto industry plays an important role in stabilizing growth and shoring up employment. Thus, it's important to step up efforts to strengthen the upward growth momentum of the industry, according to the association.

"Overall, we should not only attach importance to propel sales and production growth but also help quality improvement," Chen said. "China has already achieved advantages in intelligent connected vehicles in the NEV sector, and we should unswervingly consolidate and expand the advantage," he said.

Chen called for the roll-out of targeted policies to support trade-in of old and new cars so as to further stimulate car consumption and contribute to the industry's high-quality development.

China's surging auto exports, and its burgeoning domestic market demand, are being buoyed by the government's push for low-carbon green development, backed up by an increasingly modern industrial system and mature industrial chain. However, the US and the EU have taken protectionist actions against Chinese car exports in a bid to contain China's tech innovation and long-term economic development.

Wang Wentao, Minister of Commerce of China, stressed in Paris on Sunday that Chinese electric vehicle manufacturers' rapid development is a result of constant tech innovations, well-established supply chain system and full market competition, not subsidies.