China’s auto export exceeds 2.1 million units in H1 2023

Beijing (Gasgoo)- In the first half of 2023, China’s auto market has overcome several external influences and experienced a significant growth, with a 9.8% year-on-year rise in cumulative sales volume.

The combined efforts of national and local promotion policies, the various automobile marketing activities across different regions, and the introduction of numerous new vehicle models by automotive companies have collectively contributed to this positive momentum. Additionally, the boost in market demand can be attributed to the mid-year surge in sales driven by automakers and the relatively low base in comparison to the same period last year.

In June 2023, China produced a total of 2.561 million vehicles, representing a 9.8% rise over the previous month and a 2.5% edge up over the previous year, according to data from the China Association of Automobile Manufacturers (CAAM). 

At the same time, China's monthly auto sales came in at 2.622 million vehicles in June, ticking up 10.1% from a month ago and 4.8% from the year-ago period. 

Thanks to the low base number in the past year and multiple beneficial factors, China’s auto market has been continuously heating up since April. In the first half of this year, there were 13.248 million and 13.239 million vehicles produced and sold across China, increasing 9.3% and 9.8% year over year, respectively. 

BYD Seal; photo credit: BYD

As one of the main factors that drive the local auto market growth, new energy vehicles (NEVs) maintained its robust performance in June. With about 784,000 and 806,000 NEVs produced and sold by automakers in China in the past month, the market boasted a respective year-over-year hike of 32.8% and 35.2%. NEVs accounted for 30.7% of the country's total auto sales last month. 

In the first half of this year, China completed a strong NEV output and sales of 3.788 and 3.747 million units, representing a 42.4% and 44.1% spike over the previous year. Sales of NEVs made up 28.3% of China’s total auto sales in the period.

Last month, automakers in China saw roughly 382,000 vehicles leave to overseas markets, notching down 1.7% month on month while surging 53.2% year over year. Of the vehicles shipped overseas in June, about 78,000 units were NEVs, down 28.4% from the previous month, but skyrocketing 170% from the earlier year. 

In the first half of 2023, a total of 2.14 million vehicles were exported outside of the country by automakers in China, soaring 75.7% from a year ago. Among which, exports of NEVs in the period reached roughly 534,000 units, which is 1.6 times higher than that of the previous year. 

MG MULAN; photo credit: SAIC Motor

According to rankings compiled by the CAAM, SAIC Motor was the number one exporter of automobiles in China during the Jan.-Jun. period, with an impressive volume of 483,000 vehicles. Meanwhile, Chery came closely after with 394,000 vehicles exported. NEV-dedicated companies such as Tesla and BYD, ranked third and ninth on the list, with 182,000 and 81,000 NEVs shipped overseas. Notably, BYD boasted a year-on-year surge of 1,006% regarding Jan.-Jun. export volume this year.  

On the other hand, China's passenger vehicle sales stood at 2.268 million units in June, up 2.1% over the previous year. In the first half of this year, automakers in the country sold a total of 11.268 million vehicles, which rose 8.8% year over year.

Last month, sales of China-branded passenger vehicles summed up to 1.205 million units, jumping 21.2% year on year, while accounting for 53.1% of China's overall passenger vehicle sales. In the first six months of this year, cumulative sales of China-branded passenger vehicles totaled 5.986 million units, increasing 22.4% from the earlier year.

Looking ahead to the second half of the year, the gradual recovery of the macroeconomic conditions is expected to have a positive effect on China’s automotive market. The strong performance of the NEV segment and the growth in automotive exports have effectively stimulated market growth. Furthermore, the continued presence of favorable policy effects will further unlock the consumer potential of the automotive market, facilitating stable industry growth throughout the year. 

However, it is important to acknowledge that the current external environment remains complex, with some structural issues still prevalent. Consumer demand continues to be insufficient, and the industry faces significant pressure and numerous challenges. Therefore, it is crucial to maintain stable and predictable policies to support the smooth operation of the industry.