China News Service, Shanghai, January 18 (Reporter Jiang Yu) China's auto sales will increase in 2021. The famous rating agency Moody's Investors Service released a report on the 18th, saying that this will be a huge challenge for Chinese automakers, parts manufacturers and automakers. Car dealerships have a positive credit impact.
The latest data released by the China Association of Automobile Manufacturers shows that compared with 2020, China's auto sales will increase by 3.8% in 2021, which is higher than Moody's previous forecast of 1.0%.
Moody's said this reflects the improvement in the supply of automotive semiconductor components (automotive chips) supporting the recovery of auto production in China and solid demand in the Chinese auto market, which is expected to achieve higher vehicle sales in 2022.
Previously, China's auto production was affected by the lack of global chip supply. According to Moody's analysis, the main reason for the shortage of chips is that the severe decline in auto sales in the first half of 2020 led to a significant reduction in chip production, and semiconductor manufacturers subsequently allocated more production capacity to consumer electronics. As demand for such products is strong, a gradual improvement in chip supply is expected to continue to pick up global auto sales in 2022.
Data show that in 2021, China's auto sales will reach 26.3 million units, which is the first time that annual auto sales have increased since the record 28.9 million units were set in 2017.
Moody's expects China's auto sales to grow by 3% year-on-year in 2022, supported by improved chip supply and stable domestic auto demand.
"According to official statistics, in 2020, the number of cars per 1,000 people in China is about 199, and the car penetration rate is still low, which will continue to support the long-term sales growth of China's auto market," Moody's believes.
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