GlobalData Observations and Commentary

In terms of production, the total LV build in January was 2.3 million units, up 49% YoY. At a vehicle type level, PV production (accounting for 90% of total LV production) in January was 2.1 million units, a YoY increase of 50%. CV production in January was 230,000 units, a rapid increase of 41% YoY.

In January, the YoY trends of joint-venture car companies and Chinese car companies remained quite different. Production by Chinese OEMs grew by 63.9% YoY while output of JV brands increased by 30.8% YoY.

In January, Chinese PV exports reached 364,000 units, a YoY growth rate of 49% and accounted for 18% of total PV production. Although exports in January decreased compared with the prior month, they were still the highest during the same period in history.

Compared with the low growth in automobile exports seen in other countries, China’s automobile exports have boomed. Starting from 2021, vehicle exports have grown strongly. Passenger car exports increased by 114% YoY in 2021 and 56% YoY in 2022. In 2023, the full-year export volume exceeded 4 million units, a YoY increase of 64%, surpassing Japan and setting a new record.

At present, the huge overseas market potential has prompted more and more Chinese car companies to seek to build factories overseas to further reduce costs. Even so, based on conservative estimates of current trends, China’s annual export volume of light vehicles will exceed 5 million units in the next 2-3 years.

*GlobalData
GlobalData says that “4000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.” J.D. Power is also part of GlobalData. Inquiries at: customersuccess.automotive@globaldata.com