Car sales in China up 24% year-on-year

In June, car sales and production in China increased year-on-year by 23.8 per cent and 28.2 per cent respectively, according to the latest data released by the China Association of Automobile Manufacturers (CAAM) on 11 July.

Compared to May, total vehicle sales grew 34.4 per cent month-on-month to 2.5 million units last month, while production also surged 29.7 per cent month-on-month to 2.5 million units.

Last month’s result meant that total vehicle sales in China fell 6.6% year-on-year to 12.1 million units in the January-June period, while production fell 3.7% year-on-year to 12.1 million units.

In June, automotive supply chains fully recovered from the impact of the pandemic, and car sales also fared better thanks to the support of car sales promotion measures issued by both the central and local governments.

By the second half of 2022, the automotive industry is expected to grow steadily. Consumer confidence is recovering due to the steady growth of the economy. In addition, passenger car sales will continue to grow due to the policy of halving the purchase tax on certain types of vehicles, CAAM says, while commercial vehicle sales will recover due to increased funding for infrastructure projects.

CAAM predicts that car sales in China are likely to increase by 3 per cent year-on-year to 27 million units in 2022. Among them, passenger car sales are expected to grow 7% year-on-year to 23 million units, while commercial vehicle sales will decline 16% year-on-year to 4 million units. Meanwhile, sales of new energy vehicles (NEVs) will increase 56 per cent year-on-year to 5.5 million units.

Last month, in the NEV sector, electric cars performed best, with sales up 120% year-on-year to 476,000 units and production also up 120% year-on-year to 466,000 units.

In June, China’s auto exports rose 57.4% year-on-year and 1.8% month-on-month to 249,000 units. Among them, passenger car exports increased 65.6% year-on-year and 1.1% month-on-month to 198,000 units. In the January-June period, China’s total vehicle exports increased 47.1% year-on-year to 1.2 million units.