TOKYO — Zhejiang Geely Holding Group made history in the January-March period, selling 730,000 vehicles and becoming the first Chinese automaker to enter the global top 10 in quarterly auto sales.
Geely, which ranked 12th in the first quarter of 2023, surpassed Germany’s Mercedes-Benz Group and BMW, securing the 10th spot with a 27% year-on-year sales increase.
Other Chinese automakers, including BYD, Changan Automobile, Chery Automobile, and SAIC Motor, also ranked in the top 20. The global sales rankings were compiled from company disclosures and data from survey firm MarkLines.
Despite the extended Lunar New Year holiday, which typically results in fewer sales days and impacts Chinese carmakers’ performance, the first quarter of 2024 saw a combined sales volume surge of over 20% for the five Chinese companies in the top 20. Overall sales growth for the top 20 carmakers was 2%.
Geely Auto’s core EV brand, Zeekr, performed exceptionally well, with sales of new energy vehicles more than doubling. Volvo Car, part of the Geely group, also saw a 12% sales increase.
BYD sold 620,000 vehicles in the first quarter, up 13%, with EVs making up 300,000 of those sales, trailing behind Tesla’s 380,000 EV sales.
Exports significantly contributed to the sales growth of Chinese automakers. Geely group’s overseas sales jumped 43%, while BYD’s exports to Europe and Southeast Asia grew by 150%, reaching 98,000 vehicles.
In China, EVs and plug-in hybrids accounted for more than 32% of January-March sales. However, competition is fierce, with BYD initiating a price-cutting trend followed by Changan and other manufacturers, bringing EV prices closer to those of conventional gasoline vehicles.
China’s EV market is beginning to show signs of a supply glut. Local media reports indicate that EV and related production capacity will reach 36 million vehicles by 2025, while projected sales are about 17 million vehicles, highlighting a growing gap between supply and demand.
To address this surplus, Chinese automakers are increasingly targeting overseas markets. In 2023, new energy vehicle exports grew by 78% to 1.2 million vehicles. Estimates suggest exports could rise to 3.5 million vehicles by 2025.
The U.S. and European nations have expressed concerns over the influx of low-priced Chinese vehicles, citing unfair competition and potential job losses. In response, the U.S. plans to increase tariffs on China-made EVs to 100%.
Chinese automakers are expanding exports to Russia, as well as Central and South America. According to the China Association of Automobile Manufacturers, Russia was the top export destination for assembled vehicles in the January-March quarter, followed by Mexico. Middle Eastern countries, such as the United Arab Emirates, are also becoming significant export markets.
In global sales rankings, Toyota Motor led the first quarter with 2.52 million vehicles, down 5%, while Volkswagen Group ranked second with 2.1 million vehicles, up 3%. Hyundai Motor Group, including Kia, was third, with sales down 2% to 1.76 million vehicles.
