On August 11th, the China Association of Automobile Manufacturers held its monthly information conference. China Securities Journal reporters learned from a press conference that in July, car sales reached 2.593 million units, a decrease from the previous month and a year-on-year increase of 14.7%. Among them, the sales of new energy vehicles reached 1.262 million units, continuing the rapid growth trend. The sales of new energy vehicles accounted for 48.7% of the total sales of new cars. Chen Shihua, deputy secretary-general of the China Automobile Association, said: "In July, the car market entered a traditional slack season, and some manufacturers arranged annual equipment maintenance. The pace of production and sales slowed down, showing a seasonal decline on a month on month basis. At the same time, the effect of the old for new policy continued to appear, and the industry's comprehensive renovation" internal volume "work made positive progress. The enterprise's new models continued to be launched, helping the car market to operate smoothly." The data of the China Automobile Association, which is a prosperous producer and marketer of new energy vehicles, showed that in July, China's automobile production and sales completed 2.591 million and 2.593 million respectively, down 7.3% and 10.7% on a month on month basis, with year-on-year growth of 13.3% and 14.7% respectively. In terms of passenger cars, in July, the production and sales of passenger cars reached 2.293 million and 2.287 million respectively, a decrease of 6% and 9.8% month on month, and an increase of 13% and 14.7% year-on-year, respectively. Among them, the sales volume of Chinese brand passenger cars reached 1.604 million units, a year-on-year increase of 21.3%, with a sales share of 70.1%, an increase of 3.8 percentage points compared to the same period last year. In terms of new energy vehicles, in July, the production and sales of new energy vehicles reached 1.243 million and 1.262 million respectively, an increase of 26.3% and 27.4% year-on-year. The sales of new energy vehicles accounted for 48.7% of the total sales of new cars. From January to July, the production and sales of new energy vehicles reached 8.232 million and 8.22 million respectively, an increase of 39.2% and 38.5% year-on-year. The sales of new energy vehicles accounted for 45% of the total sales of new cars. "This means that the automobile industry has played an important role in stimulating domestic demand," Chen Shihua said. Meanwhile, the export of new energy vehicles has become a significant driving force for the growth of automobile exports. Chen Shihua introduced that in July, automobile exports reached 575000 units, a decrease of 2.8% compared to the previous month and a year-on-year increase of 22.6%. Among them, the export of traditional fuel vehicles was 350000 units, a month on month decrease of 9.6% and a year-on-year decrease of 4.3%; The export of new energy vehicles was 225000 units, a month on month increase of 10% and a year-on-year increase of 1.2 times. In July, seven out of the top ten companies in terms of vehicle exports achieved positive growth in export volume. Chery's export volume reached 119000 vehicles, ranking first, with a year-on-year increase of 31.9%, accounting for 20.7% of the total export volume. Compared with the same period last year, BYD's export growth rate was the most significant, with exports reaching 81000 vehicles, a year-on-year increase of 1.6 times. The reporter noticed that many new energy vehicle companies have accelerated their pace of going global this year. In the first half of the year, the export growth rate of zero running cars was significant, with an annual export target of over 50000 vehicles. With the establishment of localized production bases, Leapmotor is expected to have significant growth in the European market next year. The new car models are accelerating their launch, and since July, many car companies have released new models to enrich market supply, with the SUV market being favored. On August 8th, Geely Galaxy A7, a subsidiary of Geely Automobile, was officially launched, with a total of 7 models equipped with Geely's new generation Thor EM-i super hybrid system, which has outstanding energy-saving performance advantages. The relevant person in charge of Geely Automobile stated that this year, Geely Galaxy plans to achieve an annual sales target of over one million vehicles with a diversified product matrix. Xiaopeng Motors held its new Xiaopeng P7 debut press conference on August 6th. Xiaopeng Motors Chairman He Xiaopeng stated in an interview with China Securities Journal that the all-new Xiaopeng P7 has an effective computing power of 2250 TOPS and is equipped with a 5C super charged AI battery. We hope that the all-new Xiaopeng P7 will once again become the 'totem' of Xiaopeng Motors and enter the top three of the new energy sedan market with a price of over 200000 yuan. ”Prior to this, multiple new energy SUVs had been launched intensively in July, covering both economy and mid to high end models, including the Xiaopeng G7, Ledao L90, Zero Run C11, Ideal i8, Lantu FREE+, and the all-new Geely Galaxy E5. It is worth noting that Ideal Automobile is accelerating the dual energy strategy of "extended range+pure electric". After the first pure electric model, the Ideal MEGA, failed to hit the market last year, Ideal Motors postponed the launch of its pure electric SUV model to this year. On July 29th of this year, Ideal Auto released its first pure electric SUV, the Ideal i8, which has attracted a lot of market attention. In addition, the pure electric SUV Ideal i6 will be launched in September. The market performance of Ideal i8 and i6 will be the key to testing the success of Ideal's pure electric strategy. He Xiaopeng told reporters, "Whether it's sedans, SUVs, or MPVs, if you want to perform well in market competition, you must have no weaknesses and strengths. In the future, it will be difficult to rely solely on positioning or marketing for competitive logic. It will definitely be a comprehensive strength competition. ”The policy continues to boost auto consumption Chen Shihua said at the press conference: "Recently, the country has issued the third batch of ultra long-term special treasury bond to support consumer goods trade in funds, and the fourth batch will be issued in October as planned, and will urge the local government to refine the fund use plan to ensure that the funds are used in an orderly and balanced way by the end of the year. The clarity of the policy will help stabilize consumer confidence, continue to boost auto consumption, and ensure the stable operation of the industry in the second half of the year." In addition, according to the existing policy arrangements, the vehicle purchase tax will be halved for new energy vehicles purchased from January 1, 2026 to December 31, 2027. The policy is expected to stimulate consumers to purchase cars in advance in the second half of this year, coupled with the continued implementation of supportive policies, which is expected to drive the consumption of new energy vehicles this year, and achieve the sales target of 16 million vehicles for the whole year without difficulty. ”Chen Shihua recently stated in an interview with China Securities Journal reporters. Will the policy changes of tax reduction and exemption for the purchase of new energy vehicles affect the market competitiveness of new energy vehicles? The change in the purchase tax policy for new energy vehicles will not affect the competitiveness of new energy vehicles, especially for the high-end market. The reason why new energy vehicles are favored nowadays is not only due to purchase tax reductions or license plate discounts, but also because of their leading advantages in intelligent assisted driving, intelligent cockpit, and stylish design, which make consumers willing to pay a premium for them. ”Roland Berger Vice Partner Lin Yun told China Securities Journal reporters that no matter how policies are adjusted, the core logic for new energy vehicle companies to maintain competitiveness remains unchanged, including defining ultimate products to achieve competitive differentiation, efficient vertical integration to ensure cost advantages, and building moats for technology and service ecosystems. (New Society)