China’s auto output, sales climb up YoY, MoM in Feb. 2023

Beijing (Gasgoo)- In the second month of 2023, China's automobile output and sales both recovered from the slump in January. Meanwhile, the performance of new energy vehicles (NEVs) and auto export sustained their robust momentum as usual. 

Since the usual sales block of the local auto market, the Chinese Lunar New Year holiday, fell in January this year and February in 2022, respectively, the base number of both periods stood at a relatively low level. The factor led to a double-digit year-on-year and month-on-month growth in February sales of both China’s passenger vehicle and commercial vehicle sectors. 

In February 2023, China produced 2.032 million vehicles in total, which jumped 27.5% over the previous month and 11.9% over the previous year, respectively, according to the China Association of Automobile Manufacturers (CAAM). Meanwhile, with 1.976 million vehicles sold, the country's auto market achieved a 19.8% month-on-month increase and a 13.5% year-on-year growth in the past month. 

Nonetheless, the slope in January dragged down the country’s year-to-date auto output and sales. In the first two months of this year, there were 3.626 million vehicles produced across the country, down 14.5% year over year. Meanwhile, China’s annual auto sales dropped 15.2% from a year ago to 3.625 million units. 

NIO eT5; photo credit: NIO

Despite the withdrawal of the national NEV purchase subsidy, with a slew of new NEV models as well as regional NEV-subsidizing policies rolling out in the past month, China’s overall NEV market remained strong. Specifically, there were 552,000 NEVs produced in the past month, surging 48.8% year on year. At the same time, February sales of NEVs amounted to 525,000 units, zooming 59.9% from a year ago. 

NEVs accounted for 26.6% of the country’s total auto sales last month, which was 1.9 percentage points higher than that of the previous month. 

In February, there were roughly 329,000 vehicles shipped overseas by automakers in China, representing a 9.4% growth month-on-month and an 82.2% spike year-on-year. Among which, 271,000 units were passenger vehicles, up 8.3% from January and 85.8% from the prior-year period. With 87,000 units exported (+5.3% MoM, +79.5% YoY), NEVs accounted for 26.44% of the total export volume in the past month.

China’s cumulative automobile export volume summed up to 630,000 vehicles in the first two months of this year, hiking up 52.9% from a year ago. Of which, about 170,000 units were NEVs (+62.8% YoY). 

Dolphin; photo credit: BYD

China’s passenger vehicle sales amounted to 1.653 million units in the past month, jumping 12.5% over the previous month and 10.9% over the previous year. Comparing to February 2022, monthly sales of conventional oil-fueled vehicles in China dropped 9.8% year on year to 964,000 units. The boost in China’s February passenger vehicle sales were partly attributed to the roll-out of new NEV models, and the release of NEV incentives and car shopping coupons, the CAAM commented. 

In the Jan.-Feb. period, a total of 3.121 million passenger vehicles were wholesaled by automakers in China, representing a 15.2% decline from a year ago.

In February, sales of China-branded passenger vehicles summed up to 873,000 units, surging 37.3% over the previous year and accounting for 52.8% of China's overall passenger vehicle sales. 

As to the commercial vehicle sector, China’s commercial vehicle market saw the first positive growth in output and sales in a year. In February 2023, production and sales volumes of China’s commercial vehicles reached 317,000 units and 324,00 units, indicating a respective 61% and 79.4% soar month-on-month, and a 13.5% and 29.1% increase year-on-year.