Automotive Industry:China

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Developments

March

Sales of passenger vehicles rose by 14.3% in March from February and 0.3% year-on-year. In Q1 2023, passenger car sales declined 12.4% year-on-year to 4.3 million units. New energy vehicle sales lead the trend with a growth of 21.9% in March year on year to 543,000 units(March 2022: +28.1%). Cui Dongshu, the association's secretary general said that April will definitely see a strong recovery in sales growth while citing that last year base period was weak.

February

Sales of passenger vehicles grew 10.4% y/y in February to 1.42 million units. The base period was associated with weak sales due to lunar holiday. Sales of new-energy vehicles (NEVs) rose 61% in February compared to the previous year.

January

Following the end of state subsidies, full week of Lunar celebration in January and price rises by some automakers, retail auto sales totalled 985,000(-45% y/y) in January, 43% less than a month earlier, according to the China Passenger Car Association (CPCA). Sales of new-energy vehicles (NEVs) declined 1% y/y to 304,000 units, down 43% from December.

2023 Projections

The Chinese car market association predicts the Chinese car market to increase by 3% y/y in 2023 with NEVs growing 35% to 9 million and taking market share from combustion engines.