China’s new energy vehicle (NEV) exports soared 140% year-over-year in March, a sign of strengthening overseas demand that coincided with a sharp rebound in the domestic auto market where NEV penetration climbed back above 50%.
"The passenger car market showed a significant marginal improvement in March," BOCOM International said in a research report released Tuesday. The bank pointed to the high growth in exports and a rebound in domestic sales as key drivers.
Total passenger vehicle exports reached 695,000 units in March, a 74.3% increase from the prior year, with NEVs accounting for 50.2% of that total. Domestically, retail sales of passenger cars hit 1.65 million units, a 59.4% increase from February, though still down 15% from a high base last year. Retail sales of NEVs jumped 82.6% month-over-month to 848,000 units, pushing the domestic penetration rate to 51.5%.
The data reinforces the growth narrative for China's leading automakers, which are increasingly looking abroad for growth while benefiting from accelerating EV adoption at home. Investors are now watching for the second quarter's new model launches and the Beijing auto show to gauge if the momentum can be sustained, with BOCOM highlighting potential upside for BYD (1211.HK), Geely Automobile (0175.HK), and XPeng (9868.HK).
While domestic brands saw their market share dip slightly year-over-year, they still commanded a dominant 61.8% of the market with 1.02 million units sold. In the NEV segment, domestic brands accounted for a 66.6% share of retail sales. The report also noted that luxury brands are accelerating their electric transition, with their NEV penetration rate reaching 33.9% in March.
This article is for informational purposes only and does not constitute investment advice.
