China saw its vehicle production and sales both exceed 30 million units in 2023, with the figures expected to grow by around 3% to 31 million this year, according to the China Association of Automobile Manufacturers (CAAM). Local and international automakers in the country manufactured a record 30.16 million vehicles and delivered 30.09 million units last year – also a record – up 11.6% and 12% year-on-year, respectively. “No other country has ever seen a vehicle market this size,” said Chen Shihua, Deputy Secretary General of the CAAM. China has been the world’s largest vehicle market since 2009. Chen said the macro-economic recovery and the government’s favorable industrial and consumption-stimulating policies will further accelerate China’s upswing this year. He said the market started slow in early 2023, but monthly sales gradually shifted into a higher gear in the second half. Sales totaled 3.16 million units in December, a new high that pushed the year’s total deliveries to surpass the previous record of 28.88 million units in 2017.
China surpassed Japan last year as the world’s largest auto exporter, with 4.91 million vehicles shipped overseas, up 57.9% year-on-year. The CAAM estimates exports this year will reach 5.5 million units. The rising popularity of new energy vehicles (NEVs) contributed to the Chinese auto market’s performance last year. Statistics show that 9.6 million electric vehicles and plug-in hybrids were manufactured in the country last year, with 9.5 million being sold in 2023, up 35.8% and 37.9% year-on-year, respectively. NEVs accounted for 31.6% of total vehicle deliveries in 2023, up 5.9 percentage points compared with the previous year. The sector helped fuel the rise of Chinese brands. Last year, 14.6 million such vehicles were delivered, up 24.1% year-on-year, more than double the sector’s average of 12%. Combined they seized a domestic market share of 56%. BYD topped the list. It sold 3.02 million vehicles in 2023, up 62.3% year-on-year. Nasdaq-listed Li Auto topped the ranking of Chinese startups last year, with 376,000 units delivered, up 182.2% year-on-year. Li Xiang, Founder and CEO of Li Auto, said the firm will work to sell over 100,000 units a month this year, with its yearly sales goal standing at 800,000 units.
Volkswagen has maintained its position as the best-selling foreign-branded automaker in China, with 3.24 million vehicles sold last year, up 1.6% from 2022. Ralf Brandstaetter, Member of the Board of Volkswagen for China, said the company’s robust position reflects the success of its “in China for China” strategy. “We are tailoring our portfolio to the needs of Chinese customers. While the situation will remain demanding over the next two years, we are further developing our technological capabilities and setting up our business for the future,” he said. In the country’s premium vehicle market, BMW Group sold 824,932 BMW and Mini vehicles in China last year, up 4.2% year-on-year. Its EV sales totaled 99,972 units, soaring 138% year-on-year, and accounted for about 30% of the brand’s global EV sales, the China Daily reports.
