Thanks to the strong promotion of passenger cars (PVs) and commercial vehicles (CV) demand, the mainland China Auto Market has experienced a strong growth in another month in February. According to the data released by the China Automotive Industry Association, China’s new car wholesale sales increased by 364.8% year-on-year, reaching 1.45 million units, and the output increased by 418.9% year-on-year, reaching 1.5 million vehicles. As of February, China’s new cars accumulated sales of 39.58 million, an increase of 76.2% year-on-year, with a yield of 3.89 million, an increase of 88.9% year-on-year.

Among the new car production and sales in last month, the sales volume increased by 409.9% year-on-year, from 11.56 million, and the output increased by 480.6% year-on-year to 11.6 million. China Automotive Industry Association defines a passenger car including cars, sports multi-purpose vehicles (SUV), multi-purpose vehicles (MPV) and small trucks. In February, the sales of Chinese sedan increased by 452.4% year-on-year, to 5.28,000; MPV sales increased by 218.4% year-on-year, to 46,000 units; SUV sales increased by 399.1% year-on-year, to 566,000; small truck sales increased by 386.4% year-on-year, to 1.6 Ten thousand. Since this year, the number of passenger cars has increased by 74.0% year-on-year, to 3.2 million, and the output increased by 87% year-on-year to 30.7 million.

The sales of commercial vehicles (including medium and heavy commercial vehicles) in February continue to be strong. Last month, commercial car sales increased by 246.2% year-on-year, to 299,000, commercial vehicle production increased by 280.8% year-on-year to 340,000. Since this year, commercial car sales increased by 86.2% year-on-year, to 7.57 million, commercial vehicle output increased by 96.3% year-on-year to 8.88 million.

In February, new energy vehicles (NEV), including pure electric vehicles (BEV), plug-in hybrids (PHEV) and fuel cell vehicles (FCV) increased by 584.7% year-on-year to 110,000. In February, pure electric passenger car sales increased by 633.6% year-on-year, to 89,000, and pure electric commercial vehicles increased by 144.5% year-on-year to 3,000. In February, the plug-in mixed passenger car sales was 17,000, an increase of 596.5% year-on-year. Since this year, China’s new energy vehicles have increased by 319.0% year-on-year, to 289,000, and new energy vehicles have increased by 386.6% year-on-year to 317,000.

In February, China’s new car export increased by 134.4% year-on-year to 105,000. From a model, the export volume of passenger cars increased by 122.8% year-on-year, to 77,000, and commercial vehicle exports increased by 174.6% year-on-year, to 28,000.

IHS Markit View Deep Analysis

The data released by the China Automotive Industry Association shows that in February, the new car demand rebounded for the second consecutive month, which is largely due to the lower comparison of the comparative period last year. In February 2020, China’s new car sales fell sharply by 79% due to outbreak of new crown pneumonia. In the last week of January 2020, the domestic new coronary pneumonia epidemic situation was upgraded, causing a sharp drop in the auto market last year.

Since the government has vigorously developed infrastructure construction, the domestic commercial vehicle sales continued to grow with the demand of commercial trucks and trucks. The efforts to stimulate domestic consumption will continue to promote the market’s needs of commercial vehicles. With the market to Tsela Model 3, BYD Han EV and Wulinghong MINI EV is high, China’s new energy auto market is still strong last month. Compared with last year, the current needs of the current private sector play a more important role in supporting the expansion of new energy auto industry.

The encouragement and preferential policies issued by the government will continue to play in 2021 China’s new car demand. On February 9, the Ministry of Commerce once again urged local governments to support car consumption in rural areas, and increased license plate quotas to encourage consumers (especially car families) to purchase new energy vehicles. China is also increasing attention to hydrogen energy vehicles. In September last year, China announced a new policy of supporting hydrogen fuel cell vehicles (FCV) sales and industry supply chain and technology development. This initiative will help promote China’s 525 fuel cell car insurance increase to 100,000. Under the encouragement of government incentives, Chinese car manufacturers such as SAIC, Great Wall, Geely Automobiles have announced their plan to launch fuel cell vehicles. For example, the SAIC Group plans to launch 10 fuel cell vehicles in 2025, and the domestic market share reaches 10%.

In February, the shortage of semiconductor supply continued to affect automotive production in mainland China. However, we still expect that the current semiconductor shortage is more seasonal issues, and the production of lost in the first quarter will make up for it later.

According to Esin Huamai, in January, the light-type automotive market is expected to fall by 4.3% in 2020, and it is expected to increase by 6% year-on-year to 24.8 million. In 2021, China’s light vehicle sales expected to increase by 6.2% to 25.1 million.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *