June has passed halfway. From the current point of view, the auto market growth in that month was slightly weak.

　　Recently, the China Automobile Association, based on the data reported by 11 key automobile companies in the industry, showed that in early June 2021, 11 key companies had completed 434,000 vehicles, a year-on-year decrease of 36.6%. Among them, passenger vehicle production fell by 37.9% year-on-year, and commercial vehicle production fell by 30.2% year-on-year.

　　In addition, according to data from the Federation of Travelers, the market retail sales of major manufacturers of the Federation of Travelers in the first week of June reached an average of 25,365 vehicles per day, a decrease of 7% compared with the first week of June last year, and a decrease of 26% compared with the same period in May of this year, showing a weak performance. In the second week of the month, the market retail sales reached an average of 35,058 vehicles per day, a decrease of 2% year-on-year, and a 4% decrease from the same period in May this year. Although performance has improved, it is still relatively weak.

　　The weekly retail sales of major manufacturers of the Multimedia Association in June; image source: Multimedia Association

　　In terms of wholesale sales, data shows that the major manufacturers of the Federation of Transport Associations wholesaled 25,396 vehicles on the first Sunday of June, a decrease of 26% compared with the same period in June last year, and a 2% increase in sales compared to the same period in May. The average wholesale of 33,242 vehicles on the second Sunday of June , A decrease of 17% compared with the same period in June last year, the trend is relatively slow. This week, compared with the same period in May, the sales volume fell by 9%, and the manufacturer's production and sales were relatively weak.

　　The performance of the auto market is weak, to a certain extent, it is affected by terminal demand. Long before the above-mentioned data was released, the China Automobile Dealers Association pointed out that the June college entrance examination season will drive certain sales, but insufficient terminal demand is still a major problem.

　　In fact, this issue has already been reflected in May. “The automobile market in May was relatively stable, but it did not meet the expected conditions. The May Day holiday partly replaced the Spring Festival holiday, and there were a large number of people returning home from travel, which in turn affected the number of stores and transactions. After the holiday, it was affected by the recurrence of epidemics in many places. The south was affected by extreme weather and busy farming in some areas, and terminal demand was obviously insufficient, which led to a decrease in sales." China Automobile Dealers Association said.

　　May car sales both fell from the same month-on-month basis; source of image: China Automobile Association

　　Entering June, similar influencing factors still exist. The Passenger Association pointed out that the overall passenger car market sales in the first two weeks of June this year dropped by 4% year-on-year, which should be due to some impact on the consumer environment. “Measures such as the Guangdong epidemic and the closure of certain regions temporarily affected the sales of the auto market, and the trend of Japanese cars is not Strong."

　　In addition, the impact of chip shortages and rising prices of raw materials continues to appear, which also has an adverse effect on the growth of the auto market. Specifically, the shortage of chips has led manufacturers to implement production reduction plans. Some dealers said there is a shortage of supply for hot-selling models, and the prolonged delivery cycle of vehicles has led to unstable sales. Not only that, the rising cost of raw materials, the tightening of manufacturer's promotional policies, and the increased pressure on dealers to operate have also brought a certain impact.

　　“There is a shortage of chips, dealers’ inventories continue to be low, preferential activities are recalled, and manufacturers’ promotional policies have been recalled. Dealers are unable to complete the sales assessments for the second quarter and the first half of the year.” The China Automobile Dealers Association said that at present, dealers mostly sell at insured prices. Mainly, sales in June are expected to continue to decline from the previous month in May.

　　Inventory coefficient doubled down the same month-on-month in May; image source: China Automobile Dealers Association

　　However, the situation is expected to improve in the second half of June compared to the first half of June.

　　According to the analysis of the Travel Association, from the perspective of wholesale sales, due to the epidemic in early June and the continued impact of chips, the pace of production and sales of some manufacturers in early June was relatively slow, and some car companies took longer vacations, and sales of manufacturers were low. , But after all, June is a half-year sprint period, and the epidemic situation in Guangdong should be gradually eased. Therefore, there is still hope that production and sales performance will recover relatively at the end of the month.

　　In response to the longer-term development of the auto market, the China Automobile Association stated that looking forward to the future, my country’s economic operation will be stably strengthened and stable, which will play a good supportive role in the stability of automobile consumption. However, the global epidemic situation is still complicated and the world economy The recovery is very uneven and the foundation for domestic economic recovery is not yet solid. This has also brought certain difficulties to the development of the automobile industry. In particular, the impact of chip supply issues on corporate production has increased month by month. The sharp rise in raw material prices has further increased the cost pressure on enterprises. The continued appreciation of the U.S. dollar exchange rate will have a certain impact on exports. Therefore, the Association for the Development of the Automobile Industry in the future continues to remain cautiously optimistic.

　　It is worth mentioning that at the 2021 China Automobile Forum hosted by the China Automobile Association a few days ago, Xu Haidong, deputy chief engineer of the China Automobile Association, mentioned that the association judges that the automobile industry will maintain a low-speed and stable normal during the "14th Five-Year Plan" five-year period. Growth, "by 2025, there should be an annual sales volume of 30 million vehicles."