Sales and production of automobiles throughout China increased on year by 32.1% and 38.3% respectively in August, according to the latest data released by the China Association of Automobile Manufacturers (CAAM) on September 9.
Compared with July, last month’s total vehicle sales slipped by 1.5% on month to 2.4 million units, while output amounted to 2.4 million units, easing by 2.4% on month, CAAM’s data showed.
In the first eight months of 2022, China’s total vehicle sales edged up by 1.7% on year to 16.9 million units, while output gained by 4.8% on year to 17 million units, according to the data.
During August, the high summer temperatures and serious drought conditions in Southwest China’s Sichuan and Chongqing had caused power output at hydropower stations in the region to decline, intensifying the mismatch between supply and demand of power. Many automakers in those regions were requested to halt production so that electricity supplies could be prioritized for household use, a policy that had a direct impact on the steady operations of the auto industry, CAAM said.
In its report, CAAM predicted that sales of passenger cars and NEVs will perform well in coming months, mainly underpinned by stimulus policies issued by the central and local governments. Also, the robust consumption period for automobiles is approaching and along with this, the power-supply crunch prompted by the high temperatures has eased.
However, the recovery of the global economy has slowed recently, mainly due to the complexity of the global situation and high inflation in many countries, CAAM said. Besides, the rising prices of raw materials for batteries, rising outbreaks of COVID-19 cases in China and other factors have brought uncertainties to the supply chain, the association said.
Last month in the NEV sector, electric cars performed the best, with sales soaring 92.9% on year to 522,000 units and production also surging by 110% on year to 536,000 units.
In August, China’s auto exports skyrocketed by 65% on year or by 6.2% on month to 308,000 units. Among the total, exports of passenger cars jumped by 68.7% on year to 260,000 units. Over January-August, China’s total vehicle exports increased by 52.8% on year to 1.8 million units, CAAM’s data showed.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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