One quarter ahead of schedule, the Chinese automotive industry achieved impressive results that surpassed last year’s full year. On October 11th, the China Association of Automobile Manufacturers (hereinafter referred to as the “China Automobile Association”) and the National Association of Automobile Manufacturers held communication meetings to disclose key data and the latest operational situation of the automotive industry for the first three quarters of 2023. Data shows that in the first three quarters of this year, China exported 3.388 million vehicles, with a total export volume of 3.111 million vehicles for the entire year last year; The penetration rate (market share) of new energy vehicles in China was 29.8%, compared to 25.6% last year, both achieving catch-up and surpassing.
The person in charge of the China Automotive Union and the Passenger Transport Association told Shanghai Securities News that the “golden nine silver ten” plan for the Chinese automobile market can be fully achieved. It is expected that with the implementation of various policies to promote automobile consumption and stabilize industry growth, China’s automobile exports and new energy vehicle production and sales will become stronger and stronger, and the entire industry and major enterprises are expected to climb new peaks.
Have confidence in achieving the annual sales target
According to data from the China Automobile Association, in September 2023, China’s automobile production and sales completed 2.85 million and 2.858 million units respectively, with an average increase of 10.7% month on month and 6.6% and 9.5% year-on-year, respectively. The production and sales volume reached a new historical high for the same period, continuing the growth trend. In the first three quarters, the production and sales of automobiles reached 21.075 million and 21.069 million respectively, with year-on-year growth of 7.3% and 8.2%, respectively.
The progress in the field of new energy vehicles is even more gratifying. In September, China’s production and sales of new energy vehicles completed 879000 and 904000 units respectively, an increase of 16.1% and 27.7% year-on-year. In the first three quarters, the production and sales of new energy vehicles completed 6.313 million and 6.278 million units respectively, with year-on-year growth of 33.7% and 37.5%, and a market share of 29.8%. According to statistics, the cumulative sales of new energy passenger vehicles ranging from 150000 to 200000 yuan were 1.933 million units, a year-on-year increase of 66.4%.
The “Work Plan for Stable Growth in the Automotive Industry (2023-2024)” jointly issued by the Ministry of Industry and Information Technology and other departments on September 1 proposes that China’s automotive industry should maintain a stable and positive development trend in 2023, striving to achieve annual sales of about 27 million vehicles, a year-on-year increase of about 3%, and the sales of new energy vehicles should reach about 9 million vehicles, a year-on-year increase of about 30%.
According to the above goals, China’s new energy vehicles need to achieve a sales target of approximately 2.722 million units in the fourth quarter, with an average monthly sales of over 900000 units.
Chen Shihua, Deputy Secretary General of the China Automobile Association, said that with the implementation of various policies to promote automobile consumption and stabilize the growth of the industry, its effects are also accumulating. Based on the performance of the new energy vehicle market in September, it is inferred that the sales target of 9 million new energy vehicles for the entire year of 2023 can be basically achieved.
Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, told reporters that with the improvement of overall market confidence, the “Golden Nine Silver Ten” market in China’s automobile market in 2023 can be fully realized. Moreover, due to the price reduction of upstream raw materials, some Chinese new energy vehicle companies voluntarily reduced production in September. The company hopes to use low-cost raw materials such as lithium carbonate in subsequent production to reduce vehicle manufacturing costs and further enhance competitiveness.
According to data released by the China Association of Automobile Manufacturers, as Chinese independent automobile companies expand their market base along multiple new energy routes, the number of wholesale sales exceeding 10000 vehicles reached 17 in September (an increase of 2 compared to the previous month and 2 compared to the same period last year), accounting for 88.4% of the total number of new energy passenger vehicles. According to the wholesale sales of new energy vehicles, the top five Chinese car companies are BYD (286903 vehicles), Geely Automobile (54472 vehicles), GAC Aian (51596 vehicles), Changan Automobile (42812 vehicles), and Ideal Automobile (36060 vehicles).
Exports drive the entire Chinese automotive industry
Sailing out to sea has become a beautiful scenery in the Chinese automotive industry. According to data from the China Automobile Association, in September, China exported 444000 vehicles, exceeding 400000 vehicles for two consecutive months, a 9% month on month increase and a 47.7% year-on-year increase. In the first three quarters, China exported 3.388 million vehicles, a year-on-year increase of 60%.
The export growth rate of China’s new energy vehicles is significantly higher than that of traditional fuel vehicles. In September, 96000 new energy vehicles were exported, a year-on-year increase of 92.8%. In the first three quarters, the export of new energy vehicles reached 825000 units, a year-on-year increase of over 110%.
Throughout 2023, China’s automobile exports are expected to exceed 4.5 million units, which will drive the Chinese automobile industry to a new peak, “Xu Haidong, Deputy Chief Engineer of the China Automobile Association, told reporters.
Xu Haidong stated that the main force of China’s automobile exports is still traditional fuel vehicles, and new energy vehicles have also played a significant role. Chinese cars have strong international competitiveness and have been accepted by many foreign consumers.
Given the rapid development of China’s automotive industry, some countries hope to take measures to delay the impact of importing new Chinese cars. Regarding this, Xu Haidong believes that relying solely on trade means cannot prevent the rise of Chinese car companies. Moreover, according to the conventions of the automotive industry, Chinese car companies and industry chain enterprises can solve the problems encountered in exports through direct investment and localized production, thereby achieving a win-win situation.
According to the export data of the first three quarters, the top three Chinese companies in terms of vehicle export growth rate are BYD (exporting 154000 vehicles, a year-on-year increase of over 520%), Chery (exporting 648000 vehicles, a year-on-year increase of over 110%), and Great Wall Motors (exporting 212000 vehicles, a year-on-year increase of 89.4%).
From January to August this year, among the top ten countries in China’s automobile export volume, Russia and Spain showed strong market performance, with year-on-year growth of over 670% and 650% respectively; The top three markets for new energy vehicle exports are Belgium, Thailand, and the United Kingdom.
Benefit from following the entire industry chain
The rapid growth of China’s automobile production, sales, and exports, represented by new energy vehicles, has also benefited upstream and downstream industries and enterprises in the industrial chain. Tong Zongqi, Deputy Secretary General of the China Electric Vehicle Charging Infrastructure Promotion Alliance, told reporters that in the first three quarters, the increase in domestic charging infrastructure was 2.432 million units, including 664000 public charging piles and 1.768 million private charging piles built with vehicles, an increase of 27.9% year-on-year.
As of September 2023, the cumulative number of charging infrastructure in China is 7.642 million units, a year-on-year increase of 70.3%. The proportion of public charging stations constructed in the top ten regions such as Guangdong, Zhejiang, Jiangsu, and Shanghai reached 71.0%. According to the number of public charging stations, the top five operating companies of public charging stations are: Tedian, Xingxing Charging, Yunkuai Charging, State Grid of China, and Xiaoju Charging.
In terms of the core component of new energy vehicles, power batteries, Chinese enterprises are also rapidly developing. The person in charge of the China Automotive Power Battery Industry Innovation Alliance introduced that in the first three quarters, the total cumulative production of power and energy storage batteries in China was 533.7GWh, a year-on-year increase of 44.9%. Among them, the production of power batteries accounts for about 92.1%.
According to the data of vehicle loading, the top five power battery companies ranked in order are: Ningde Times (14.35GWh), BYD (9.83GWh), China Innovation Airlines (3.66GWh), Yiwei Lithium Energy (1.84GWh), and Guoxuan High Tech (1.47GWh).
Meanwhile, influenced by overseas market demand, China’s export volume of power and energy storage batteries continues to grow. The relevant person in charge of China Innovation Airlines stated that, following the example of China’s new energy vehicles going overseas, domestic power battery companies are actively expanding overseas markets and building new overseas production bases. The company’s Portuguese factory project is in the process of accelerating progress.
Post time: Oct-13-2023