Dongfeng Motor Group June car sales -14.7%

Dongfeng Motor Group June car sales -14.7%

In a recent report, Dongfeng Motor Group (DFMG) announced a significant drop in its June car sales, declining by 14.7% compared to the same period last year. This downturn comes amidst a broader trend of robust growth in the electric vehicle (EV) sector, both in India and China.

According to the Shriram Mobility Bulletin, truck rentals and EV sales surged in India during June 2025. Truck rentals on key routes, such as Kolkata–Guwahati–Kolkata, witnessed a 14% year-on-year increase, while EV sales, particularly in the electric two-wheeler and three-wheeler segments, saw substantial growth. In contrast, passenger car sales and two-wheeler sales in India faced subdued consumer sentiment, reflecting market uncertainty [1].

In China, the China Passenger Car Association (CPCA) reported that NEV wholesale sales reached 1.26 million units in June, a 29% year-on-year increase. This growth was driven by strong performance from major players such as Leapmotor, Dongfeng Nissan, and GAC Toyota. Additionally, many smaller automakers contributed to the overall increase in NEV sales [2].

The decline in Dongfeng Motor Group's sales may be attributed to the company's focus on traditional internal combustion engine (ICE) vehicles, which have seen a decline in demand due to increasing consumer interest in EVs. The company's inability to capitalize on the EV market growth could be a contributing factor to the sales drop.

Despite the decline, the broader automotive market shows signs of recovery, with infrastructure and agricultural sectors driving demand for commercial vehicles and tractors. The consistent growth in e-way bill generation also indicates a sustained supply chain momentum.

Investors and financial professionals should closely monitor the company's strategy to adapt to the evolving automotive landscape, particularly in the EV segment, to assess potential future performance.

References:
[1] https://www.business-standard.com/industry/auto/truck-rentals-rise-ev-sales-surge-tractor-demand-up-in-june-2025-125070400579_1.html
[2] https://cnevpost.com/2025/07/02/cpca-estimates-china-jun-nev-wholesale-1-26-million/