Cango Newsletter 20240104

Date: 2024-01-04

Cango Newsletter 20240104


Cango (NYSE: CANG) is a leading automotive transaction service platform in China, connecting dealers, financial institutions, car buyers, and other industry participants. Follow us on Twitter ( for updates.


Below please find our latest Cango newsletter. Our goal is to share the most newsworthy articles in today’s macro economy, auto industry, as well as our recent developments. Below please find the abstract and news link for more details.

Macro Economy

1. China’s 2024 New Year Holiday: 135M Domestic Trips, RMB79.73B in Revenue

As China ushered in 2024 with a three-day New Year’s holiday, its travel landscape witnessed remarkable growth, recording 135 million domestic trips, an impressive year-over-year increase of 155.3%. Domestic tourism revenue surged to RMB79.73 billion, up 200.7% year-over-year. Throughout the holiday, people gravitated towards music festivals, concerts, and other cultural activities for a captivating fusion of rich cultural immersion and festival vibes. There was a notable uptick in group excursions involving families and friends, while local outings and personalized travel experiences also gained momentum. [Link]

2. Eight Governmental Authorities, Including MIIT, Unveil Blueprint for Advancing Traditional Manufacturing’s Transformation and Upgrade

In a collaborative effort, eight governmental authorities, including the Ministry of Industry and Information Technology (MIIT), have released “Guiding Opinions on Accelerating the Transformation and Upgrading of Traditional Manufacturing Industries.” This strategic initiative targets substantial advancements in traditional manufacturing by 2027, with a focus on enhancing advanced manufacturing, elevating smartification, promoting eco-friendly green practices, and seamlessly integrating digitalization and industrialization. These orchestrated developments are designed to sustain the proportion of manufacturing within the overall economic structure. This strategic initiative is poised to further fortify China's manufacturing industry’s position and competitiveness in the global industrial division of labor. [Link

3. 10 Predictions for 2024: RMB Exchange Rate Returning to Below 7, Real Estate Identified as a Primary Risk

In recent interviews, leading chief economists have offered insights into their predictions for China’s economic landscape in 2024. Foreseeing a sustained economic recovery, they projected GDP growth of approximately 5%, accompanied by moderate upticks in both the Consumer Price Index (CPI) and Producer Price Index (PPI), along with a slight increase in export figures. Experts identified real estate as the primary potential risk to China’s economy in 2024. They anticipated that, at least in the first half of 2024, the real estate sector may remain subdued, impacting upstream and downstream sectors as well as overall economic performance. Economists expressed confidence that macroeconomic policies for 2024 will lean towards being positive. On the fiscal front, they predicted a deficit rate further exceeding 3% and a substantial issuance of special bonds that could surpass RMB3.8 trillion. Additionally, monetary policy adjustments are on the horizon, with the possibility of both reserve requirement ratio (RRR) cuts and interest rate reductions. It is believed that the PBOC may consider a RRR cut for financial institutions as early as the first quarter of 2024. [Link]

Automobile Market

1. NEV Makers’ 2023 Delivery Results Released: 376,030 Units Delivered by Li Auto Throughout 2023

On January 1, 2024, multiple NEV makers unveiled their production figures for December and full year 2023. Li Auto delivered 50,353 vehicles in December 2023, up 137.1% year-over-year, and successfully achieved its monthly delivery target of 50,000 vehicles. The fourth quarter of 2023 witnessed a total delivery of 131,805 vehicles by Li Auto, reflecting a substantial year-over-year growth of 184.6%. For full year 2023, Li Auto achieved total deliveries of 376,030 units, showcasing an impressive year-over-year increase of 182.2%. As of December 31, 2023, Li Auto’s cumulative deliveries surpassed 600,000 vehicles, the highest among Chinese emerging new energy automakers. Similarly, XPeng reported robust figures, with 20,115 vehicles delivered in December, up 78% year-over-year. The fourth quarter of 2023 saw XPeng’s cumulative deliveries surpass 60,000 units, an impressive surge of 171% year-over-year. With total deliveries of over 140,000 units in 2023, XPeng achieved a historic milestone of 400,000 vehicles in cumulative deliveries. [Link]

2. NIO Maintains Premium BEV Market Leadership with 160K Vehicles Delivered in 2023, Up 30.7% YoY

NIO announced its latest delivery results: NIO delivered 18,012 vehicles in December 2023, increasing by 13.9% year-over-year, and delivered 50,045 vehicles in the fourth quarter of 2023, up 25.0% year-over-year, surpassing its quarterly delivery guidance. For full year 2023, NIO delivered a total of 160,038 vehicles, showing a year-over-year increase of 30.7%. Cumulative deliveries of NIO vehicles reached 449,594 as of December 31, 2023, a testament to its persistent stronghold in the premium BEV market. NIO’s strategic commitment to steering clear of price wars fostered robust sales growth while ensuring fundamental pricing stability, culminating in impressive delivery results that reflect a healthy sales margin. NIO’s remarkable achievement of 30.7% year-over-year growth in annual deliveries positions it as an outperformer in the fiercely competitive BEV industry. [Link]

3. Automotive Industry Revamped as Seasoned Players and New Forces Strategize for Future Success

In 2023, the automotive industry kicked off an unprecedented price war, marking the onset of a major shakeout. Well-established norms governing car manufacturing for decades are being disrupted, rendering prior systematic experiences no longer applicable. Seasoned industry veterans and emerging carmakers stepping into the arena are now on an equal footing, strategically charting their way forward. Throughout 2023, price reductions have been the prevailing trend in the automotive market. As the overall market size has reached its peak, dominant brands have had to compromise on profit margins to secure volume and market share, compelling all other industry participants to similarly adjust their pricing strategies. Through “technology transfer” and “reverse joint ventures” that leverage China’s EV technological prowess, Chinese automakers have been transferring their EV technological expertise to the rest of the world. [Link]

For more information, please contact Yihe Liu at