Automotive Market
- China:
- Auto Sales: China’s auto retail sales totaled 1.72 million units in July 2024, a 3% decline both month-over-month (M/M) and year-over-year (Y/Y).
- New Energy Vehicles (NEVs): NEV sales reached 878,000 units, marking a 3% M/M increase and a 37% Y/Y increase. NEV penetration exceeded 50% for the first time.
- Battery Electric Vehicles (BEVs): BEV sales declined by 2% M/M but grew 14% Y/Y.
- Plug-in Hybrid Electric Vehicles (PHEVs): PHEV sales surged 80% Y/Y.
- Export and Production: China’s auto exports were flat M/M and Y/Y. Passenger car production declined by 7% M/M and 4% Y/Y to 2.03 million units.
- Germany:
- Sales: New car sales dropped by 20% M/M and 2.1% Y/Y in July 2024. BEV sales fell by 37% Y/Y, while PHEV sales increased by 3% Y/Y.
- General Motors: GM is committed to its Chinese operations despite losing market share to local brands (declined from 50% to less than 40% in two years).
EV Battery Market
- China:
- EV battery prices continued to decline, falling by 2% M/M in July 2024 due to lower battery material costs.
- Material Costs: The decline in prices was driven by falling costs of cathode materials and battery metals like cobalt, nickel, and copper.
- Battery Cell Prices: Prices for square ternary cells, square lithium iron phosphate (LFP) cells, and soft pack ternary cells all decreased by over 2% from June 2024.
Semiconductor Market
- Global Sales:
- Semiconductor sales reached $149.9 billion in 2Q 2024, up 18.3% Y/Y and 6.5% Q/Q.
- Regional Sales: Sales increased in China (21.6% Y/Y) and the Americas (not specified), but declined in Japan (-5.0%) and Europe (-11.2%).
- Industry Challenges:
- GlobalFoundries: Exceeded Q2 sales and profit expectations but provided a weak Q3 outlook.
- Infineon: Reported disappointing results due to muted auto demand recovery and reduced FY outlook.
- TSMC: Notified clients of a 3-8% price increase for its 5nm and 3nm process manufacturing in 2025.
Global Trade and Production Shifts
- HP: Considering moving more than 50% of its PC production from China, with Thailand as a primary destination.
- Maersk: Anticipates a slowdown in global container shipping growth after a strong start to 2024, driven by geopolitical disruptions.
Data Center and AI Market
- UK Government: Cancelled £1.3 billion in AI computing infrastructure projects to prioritize other fiscal plans.
- Nvidia: AI GPU shipments delayed due to a design flaw, pushing expected volume shipments to 1Q 2025.
Key Takeaways
- Automotive and EV Market: Strong growth in NEV sales in China is contrasted by declining sales and production figures in both China and Germany, reflecting challenges in the broader auto industry.
- Semiconductor Market: Despite some regional growth, the global semiconductor industry faces challenges with weak demand recovery and rising costs.
- Trade and Production: Companies like HP are reconfiguring their production strategies to reduce reliance on China, reflecting broader geopolitical and economic shifts.
