In June, sales and production of automobiles throughout China increased on year by 23.8% and 28.2% respectively, according to the latest data released by the China Association of Automobile Manufacturers (CAAM) on July 11.
Compared with May, last month’s total vehicle sales grew by 34.4% on month to 2.5 million units, while output also amounted to 2.5 million units, surging by 29.7% on month, CAAM’s data showed.
Last month’s result meant that during January-June, China’s total vehicle sales slipped by 6.6% on year to 12.1 million units, while output also edged down by 3.7% on year to 12.1 million units, according to the data.
During June, automotive supply chains had fully recovered from the impact of the pandemic, and the sales of automobiles also performed better with the support of measures to promote auto sales issued by both the central and local governments, CAAM said.
For the second half of 2022, the auto industry is likely to grow steadily. Consumer confidence has been recovering with the steady growth of the economy. Besides, the sales of passenger cars will continue to grow with the policy of halving the purchase tax on certain types of vehicles, CAAM argued, while sales of commercial vehicles will recover with more funding allocated to infrastructure projects.
CAAM predicts that the sales of automobiles across China are likely to edge up by 3% on year to 27 million units throughout 2022. Among the total, sales of passenger cars are forecast to grow 7% on year to 23 million units, while sales of commercial vehicles will decline by 16% on year to 4 million units. Meanwhile, sales of new-energy vehicles (NEVs) will jump by 56% on year to 5.5 million units.
Last month in the NEV sector, electric cars performed the best, with sales jumping by 120% on year to 476,000 units and production also surging by 120% on year to 466,000 units.
In June, China’s auto exports soared by 57.4% on year or by 1.8% on month to 249,000 units. Among the total, exports of passenger cars jumped by 65.6% on year or 1.1% on month to 198,000 units. Over January-June, China’s total vehicle exports jumped by 47.1% on year to 1.2 million units, CAAM’s data showed.
Written by Villanelle Xia, xiayi@mysteel.com
Note: This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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