Investor Presentation_ China Autos Overview

Summary of the Conference Call Industry Overview - The conference call primarily focused on the China Autos industry, particularly the performance of New Energy Vehicles (NEVs) and Internal Combustion Engine Vehicles (ICEVs) in the market [2][5][11]. Key Points and Arguments 1. Wholesale and Retail Performance: - In the first eleven months of 2024, wholesale vehicle volume increased to 24,432K units, a 5% year-over-year (YoY) growth from 23,220K units in 2023 [11][12]. - NEV wholesale volume surged to 10,764K units, marking a 37% YoY increase, while ICEV wholesale volume dropped to 13,669K units, reflecting an 11% YoY decline [11][12]. - Retail sales also saw a 5% YoY increase, reaching 20,253K units, with NEVs accounting for 9,601K units (up 41% YoY) and ICEVs at 10,652K units (down 15% YoY) [11][12]. 2. Export Trends: - Exports rose to 4,515K units, a 23% YoY increase, with NEV exports at 1,099K units (up 9% YoY) and ICEV exports at 3,416K units (up 29% YoY) [11][12]. 3. NEV Market Penetration: - NEV penetration in wholesale reached 48% in November 2024, indicating a strong market shift towards electric vehicles [13]. 4. Retail Pricing Dynamics: - Retail discounts and price cuts remained significant but stabilized in November, with steep discounts observed across various vehicle categories [15]. 5. Battery Cell Pricing: - Battery cell prices have stabilized in recent months, which could impact the cost structure of NEVs moving forward [17]. 6. Channel Inventory Levels: - Dealer inventory levels remained below seasonal averages in November, suggesting a tighter supply situation in the market [19]. Additional Important Insights - The performance of plug-in hybrids (including extended range electric vehicles) outperformed battery electric vehicles, indicating a consumer preference shift within the NEV segment [11][12]. - The data suggests a robust growth trajectory for NEVs, driven by both domestic demand and export opportunities, while ICEVs face declining sales trends [11][12][13]. This summary encapsulates the critical insights from the conference call, highlighting the evolving landscape of the China Autos industry, particularly in the context of NEVs and market dynamics.