Auto industry hits new records as sales, output top 30m units

CHINA’S automobile industry has set a new record, with both production and sales exceeding 30 million units for the first time, according to data released by the China Association of Automobile Manufacturers yesterday.

In 2023, China’s car output exceeded 30.16 million units, up 11.6 percent year-on-year, and total car sales during the year hit more than 30.09 million units, up 12 percent year-on-year, according to CAAM.

Both car output and sales hit record highs.

Auto exports surged 57.9 percent year on year to a record-high 4.91 million vehicles in 2023 as the country’s automakers expanded their presence overseas, data showed.

It marks another significant increase after the country exported more than 3 million vehicles in 2022 and over 2 million in 2021.

“China’s automobile exports grew from one to one million units over 55 years. By 2021, exports exceeded 2 million units, and by 2023, they approached nearly 5 million units,” said Fu Bingfeng, CAAM executive vice president and secretary general.

“These milestones signify China’s automobile industry’s shift towards electrification and intelligence, which accelerated the transformation of the global automobile industry.”

The massive growth was propelled by a surge in the exports of new energy vehicles, which soared 77.6 percent to over 1.2 million units. Exports of pure electric vehicles rose 80.9 percent while that of hybrid ones jumped 47.8 percent year on year.

In 2023, production and sales of NEVs exceeded 9.58 million and 9.49 million units, surging 35.8 percent and 37.9 percent on year, respectively. The NEV market share stood at 31.6 percent.

With such robust figures, China is expected to become the world’s biggest car exporter, a significant distinction that only took China 70 years or so to achieve, thanks to rapid growth over the past several years.

China has also become the leading producer of drive motors, with its power battery patent applications constituting 74 percent of the global total. In 2023, among the top 10 companies globally for power battery installed capacity, six are Chinese, commanding a market share of over 60 percent.

Chen Shihua, CAAM deputy secretary-general, said that with the overall economy continuing to recover, China’s auto market is likely to maintain a sound momentum this year.

The CAAM said it expects China’s NEV sales to reach 11.5 million in 2024, while total auto exports would hit 5.5 million units.