China’s Auto Market in 2024: Local Players Accelerate, Japanese OEMs Struggle, and German EVs Falter

China’s automotive landscape is undergoing a dramatic transformation. The latest sales data for 2024 underscores a clear shift: Chinese brands are dominating, while Japanese automakers struggle to adapt, and German EVs face challenges.

??? Key Takeaways from the 2024 Sales Breakdown:

? Chinese OEMs on the Rise: ???? BYD continues its meteoric growth, securing the top spot with 3.72 million sales (+37.4%). The company’s aggressive push in EVs is paying off. Geely (+25.5%) and Chery (+64.6%) also post strong gains, fueled by their expanding EV portfolios.

? Japanese Automakers in Trouble: ???? Honda (-26.7%), Nissan (-4.9%), and Toyota (-7.9%) all struggle, largely due to their slow transition to electric vehicles. Japanese brands remain heavily reliant on hybrids and ICE models, which are losing ground in China’s rapidly electrifying market.

?? German EVs Not Gaining Traction: ???? Volkswagen (-3.8%), Mercedes (-13.6%), and BMW (-11.9%) face headwinds as their EV offerings fail to resonate with Chinese consumers. Despite strong branding, local competitors offer better tech, features, and pricing, especially as Chinese consumers, affected by the economic situation, increasingly prefer more affordable vehicles.

? Tesla Still Holding, But Not Surging: ???? Tesla (+8.9%) shows moderate growth, but faces increasing competition from Chinese EV startups and established players like BYD.

?? Biggest Loser: GM (-39.3%) ???? General Motors sees the steepest decline, reflecting its weakening position in the Chinese market, where consumers increasingly prefer domestic brands.

?? What’s Next? China’s auto market is clearly favoring EVs and local players, driven in part by targeted government incentives. Japanese automakers must accelerate their EV strategy or risk further losses, while German brands must demonstrate the success of their new China strategies to better appeal to Chinese consumers.

The future of the Chinese market is electric and dominated by local champions—the question is: Will foreign manufacturers be able to keep up with the pace of change? ??

Best regards, Stefan Bratzel Director, Center of Automotive Management

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