China's auto exports doubled to a record 2.02 million in 2021, breaching the 2-million-mark for the first time, data released by the Ministry of Industry and Information Technology (MIIT) showed. Auto exports have been robust since April, setting new records, and the annual volume in 2021 was a breakthrough for exports, which hovered at over 1 million units for many years, the China Association of Automobile Manufacturers (CAAM) said. “Thanks to new-energy vehicles (NEVs) and the export market, the market share of Chinese auto brands reached 44% at home, nearing the best level in history,” the CAAM said. Vehicle production and sales increased 3.4% and 3.8% to 26.08 million and 26.28 million last year, respectively, ending three years of decreases. Total output and sales have led the world for 13 consecutive years, cementing China's position as a global auto production power.
The rise in overall auto sales is partly attributable to new energy vehicles (NEVs), whose sales rose 1.6 times, or 157.5%, to 3.52 million units, the fastest growth rate since 2016. This secured China’s position as the world’s largest market for NEVs for seven consecutive years. Wang Weiming, an official at the Ministry of Industry and Information Technology (MIIT), said the automobile industry has played an important part in stabilizing China’s industrial economy and spurring economic growth. The CAAM estimated that overall auto sales in China are expected to rise 5% to 27.5 million units this year. Among them, sales of passenger vehicles are expected to reach 23 million units, up 7%. NEV sales are estimated to reach 5 million units, up 42%.
“In the first quarter, China's auto market showed a rapid recovery due to a low base effect, but the growth slowed in the second quarter. The auto semiconductors' shortage caused a drastic drop in car production in the third quarter, while sales in the fourth quarter beat expectations,” said Fu Bingfeng, Executive Vice President and Secretary General of CAAM. The Ministry said that it will make an all-out effort to stabilize the sound development of the country's auto industry, promote the development of NEVs and intelligent internet-connected vehicles, and elevate the stability and competitiveness of the industrial chain, the Global Times reports.
U.S. electric vehicle maker Tesla sold 70,847 China-made vehicles in December, the highest monthly rate since it started manufacturing in Shanghai in 2019, according to the China Passenger Car Association (CPCA). Tesla’s December sales, which included 245 for export, were almost three times the number achieved in the same month last year and 34% higher than November’s sales. It also brought Tesla’s total sales of China-made cars for last year to at least 473,078, according to calculations by CPCA. This accounts for around half of the 936,000 vehicles the U.S. automaker delivered globally last year. Tesla’s Shanghai factory, which started delivering vehicles at the end of 2019, makes electric Model 3 sedans and Model Y sport utility vehicles (SUVs) for the domestic and international markets.
Deliveries at the Shanghai gigafactory stood at 484,130 vehicles last year, up 235% from 2020. Last year, over 160,000 of Tesla’s made-in-China cars were exported to over 10 countries and regions in Europe and Asia. The localization rate of spares reached 90%, with 92% of Tesla’s battery metal parts in the Shanghai plant capable of being recycled. Tu Le, Beijing-based Managing Director at Sino Auto Insights, said the December numbers showed that the Tesla brand in China remained strong and that it was also operationally “impressive” given that the Shanghai factory had the capacity to make around 42,000 vehicles a month on average. “They were well over that number in December despite the chip and battery shortages that other EV makers experienced.”
China’s EV market is dominated by domestic brands including BYD and Wuling – a local marque that is part of General Motors. Tesla is the only foreign brand in the top 10, according to Shanghai-based consultancy Automobility. The CPCA also said Chinese EV maker Nio delivered 10,489 cars last month, a year-on-year increase of 49.7%, while Xpeng delivered 16,000 vehicles. Germany’s Volkswagen said it sold more than 13,787 iD series EVs in China in December, the Global Times reports.
