Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China's annual auto sales climb for first time since 2017

Economic IndicatorsJan 12, 2022 03:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Cars for export wait to be loaded onto cargo vessels at a port in Lianyungang, Jiangsu province, China October 14, 2019. REUTERS/Stringer

By Sophie Yu and Brenda Goh

BEIJING (Reuters) -China's auto sales last year grew for the first time since 2017, industry data showed on Wednesday, boosted partly by a jump of 1.5 times in sales of new energy vehicles (NEVs).

Overall sales in the world's biggest car market rose 3.8% year-on-year, after monthly sales of 2.79 million vehicles in December brought total sales for 2021 to 26.28 million,data from the China Association of Automobile Manufacturers (CAAM) showed.

Production and sales are expected to be better in 2022 than last year on the prospect that issues such as chip shortage and high prices of raw materials ease, CAAM said in a statement.

After decades of upbeat growth, China's car market started contracting in 2018 under pressure from the phasing out of some tax cuts, a trade war between Washington and Beijing and amid the fallout of the COVID-19 pandemic.

The market had started to bounce back by mid-2020, but was pulled down by a global shortage of semiconductors, used in everything from brake sensors to power steering to entertainment systems, which led automakers around the world to cut or suspend production.

China's auto sales in December fell 1.6% from a year-ago period, the eight consecutive monthly drop, CAAM data showed.

But the sales of NEVs were a bright spot, including battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, showing strong momentum with a growth of 157.5% to 3.52 million units in 2021.

In December alone, 531,000 NEVs were sold, representing a surge of 114% year-on-year. China has in recent years heavily promoted NEVs as part of its efforts to curb air pollution.

Last month, CAAM said it expects automobile sales to rise 5.4% to 27.5 million this year, and for NEV sales to grow 47% to five million.

China will cut subsidies on NEVs, such as electric cars, by 30% in 2022 and withdraw them altogether at the end of the year, deeming that the market has matured enough in terms of demand to grow without the aid of government help.

But while China's EV market is seeing a very strong growth, most foreign automakers have lagged their Chinese counterparts in designing smart cars that appeal. Tesla (NASDAQ:TSLA) is the only foreign brand among the top ten.

On Tuesday, data from another Chinese auto association showed that U.S. electric vehicle maker Tesla Inc sold a record 70,847 China-made vehicles in December.

Volkswagen (DE:VOWG_p) said it missed its goal of selling 80,000 to 100,000 units from its ID battery electric series last year, having sold 70,625 vehicles, but that it would likely double sales this year.

China's annual auto sales climb for first time since 2017
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Max German
MaxiGE Jan 12, 2022 2:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so it means we buy more car stocks right as they advance for months with falling sales it makes sense
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email