China’s 2023 auto sales and output hit record highs

Sales and output of automobiles in China both capped 30 million units in 2023, hitting record highs and registering double-digit rises on year, according to the latest data released by the China Association of Automobile Manufacturers (CAAM) on January 11.

Car sales and production volumes across China reached 30.09 million and 30.16 million units last year, jumping by 12% and 11.6% respectively on year, or higher by 9.9 percentage points and 8.2 percentage points from 2022, the CAAM data showed.

For December, China’s automobile sales soared by 23.5% on year and by 6.3% on month to 3.16 million units, while output was 29.2% higher on year at 3.08 million units, though inching down 0.5% on month, according to the latest data.

China’s overall auto sales last year trended upwards after a soft start and gradually improved as the year progressed, the Association summarized.

As for passenger cars, sales and production last year recorded gains of 10.6% and 9.6% respectively on year at 26.06 million and 26.12 million units, also refreshing historical highs. “The passenger car market became more competitive in 2023,” CAAM emphasized.

Meanwhile, Chinese-brand passenger vehicles captured 56% of the domestic market last year, rising by 6.1 percentage points on year, as total sales jumped by 24.1% on year to top 14.6 million units, according to the release.

In terms of vehicles for commercial use, the numbers for these bounced off the bottom and were back on a recovery track last year, with sales and output growing by 22.1% and 26.8% on year to 4.03 million and 4.04 million units, according to CAAM.

For 2023, China’s new energy vehicles (NEVs) sector achieved sustained and rapid growth, driven by the twin effects of favorable policies and a robust market. Sales and production of NEVs reached 9.5 million and 9.59 million units last year, surging by 37.9% and 35.8% on year.

The market share of NEVs stood at 31.6% for the whole year, 5.9 percentage points higher than that for 2022, CAAM said.

On the other hand, China exported 4.91 million vehicles last year climbed by a hefty 57.9% on year to hit a new high. Within the total, 499,000 units were shipped abroad during December, up 54.3% on year and up 3.5% on month, the data showed.

CAAM also estimated that China’s total auto sales would rise by over 3% on year to top 31 million units in 2024, with the sales volume of passenger vehicles and commercial vehicles reaching 26.8 million units and 4.2 million units respectively. Within the overall total, some 5.5 million units would be shipped abroad. In tandem, NEV sales are expected to reach 11.5 million units this year.

Source: CAAM