In the first quarter, China's automobile production and sales fell slightly, and exports continued to grow rapidly

China News Network, April 4 (Zhongxin Finance Ge Cheng) On the 11th, the China Association of Automobile Manufacturers released automobile production and sales data. In the first quarter of 11, vehicle production and sales totaled 2023.621 million units and 607.6 million units, showing a slight decrease from the same period. However, in the first quarter, auto companies exported 99,4 units, a year-on-year increase of 70.6%.

Infographic: Car Transport. Photo by Yin Liqin

Automobile production and sales fell slightly in the first quarter

According to data from the China Association of Automobile Manufacturers, in the first quarter of 2023, automobile production and sales totaled 621.607 million units and 6.4 million units, down 3.6% and 7.<>% y/y, respectively.

However, the data showed a positive change in March. Specifically, in March 3, vehicle production and sales increased m/m to 2023.3 million units and 258.4 million units, up 245.1% m/m and 27% m/m, and up 2.24% y/y and 15.3% y/y, respectively.

Source: China Association of Automobile Manufacturers.

According to Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, in the first quarter, the automotive industry entered a period of switching promotion policies. The price reduction of new energy since the beginning of the year and the wave of promotion since March have caused fluctuations in the terminal market, and the economic operation of the automotive industry is generally facing greater pressure.

However, he also said that with the continuous recovery of China's economy, infrastructure projects have started one after another, and overseas exports have continued to perform well, the commercial vehicle market has shown signs of recovery.

He suggested that under the current weak market expectations, the central and local governments continue to introduce some effective policies to promote automobile consumption to further stimulate market vitality, release consumption potential, and help the industry achieve stable growth throughout the year.

Automobile exports continue to grow rapidly

In 2022, China's automobile exports have leapt to the second place in the world. Heading into 2023, how does this figure perform?

According to data from the China Association of Automobile Manufacturers, in the first quarter of 2023, automobile companies exported 99,4 units, a year-on-year increase of 70.6%. In March, automakers exported 3,36 units, up 4.10% m/m and 6.1 times y/y.

Source: China Association of Automobile Manufacturers.

Behind this data, some car companies have achieved "multiple" export growth. Specifically, in the first quarter of 2023, among the top ten automobile exporters, BYD exported 4,3 units, a year-on-year increase of 12.8 times, Chery exported 17,2 units, a year-on-year increase of 1.5 times, and Jiangqi exported 4,6 units, a year-on-year increase of 97.1%.

In the first quarter, exports of new energy vehicles reached 24,8 units, a year-on-year increase of 1.1 times. However, in March, the monthly export data of new energy vehicles fell month-on-month. In March 3, NEV exports totaled 2023,3 units, down 7.8% m/m and up 10.3 times y/y.

In response to the above changes, Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, believes that simply from March or a certain month, the decline in new energy vehicle exports does not mean that the relevant trend has changed. From a longer-term perspective, China's new energy vehicles are very competitive, and overseas markets are also rapidly accepting Chinese new energy vehicles.

What changes will happen to the auto market in the second quarter?

In the first quarter, the withdrawal of preferential policies for the purchase tax of traditional fuel vehicles and the end of subsidies for new energy vehicles put certain pressure on the performance of automobile production and sales. What changes will happen to the car market in the second quarter?

Xu Haidong told Zhongxin Finance that in the second quarter of last year, affected by the "broken chain", automobile production and sales were almost "cut off", and the base was relatively low. Therefore, in the second quarter of this year, the automotive industry should be able to show a large year-on-year growth.

In Chen Shihua's view, in the process of changes in the car market, new energy vehicles will still play an important role. According to data from the China Association of Automobile Manufacturers, in the first quarter of 2023, the production and sales of new energy vehicles reached 165.158 million units and 6.27 million units, respectively, a year-on-year increase of 7.26% and 2.26%, respectively, and the market share reached 1.<>%. For every four new cars sold, one is a new energy vehicle.

Although the new energy vehicle subsidy policy has been withdrawn this year, new energy vehicles still have the support of the vehicle purchase tax exemption policy. In the process of accelerating the transformation of traditional car companies to new energy, the cost performance of corresponding products will also be more prominent.

Source: China Association of Automobile Manufacturers.

At present, although the development momentum of new energy vehicles is very good, Chen Shihua believes that this does not mean that traditional fuel vehicles will quickly withdraw from the market. "Taking models in the range of 15,20-2,<> as an example, from the policy perspective, the gap between new energy vehicles and fuel vehicles is about <>,<> yuan."

In the first quarter, the main sales of new energy vehicles were still concentrated in the price range of 15,20-<>,<> yuan. In Xu Haidong's view, in this range, if new energy vehicles want to replace traditional fuel vehicles, it may take time. (End)