Click on the U8 for more information.
Chinese light vehicle sales remained soft in April, according to data by the LMC consultancy.* Light Vehicle (LV) wholesales were 2.12 million, growth of 81% year-on-year (YoY) based on LMC’s observation that the year-earlier base was “abnormally low.” Passenger Vehicle (PV) wholesales, 1.85 million, showed an increase of 86% YoY. Light Commercial Vehicle (LCV) wholesales grew to 271,000 – +51% YoY. On a month-on-month (MoM) basis, PV and CV sales fell by 10% and 16%, respectively.
LMC noted that the electrification of the Chinese market “continues to accelerate.” At the Shanghai Auto Show in late April more than 80% of the new models that were displayed were so-called NEVs (New Energy Vehicles). The BYD Yangwang U8 electric SUV (which debuted at Shanghai priced at ~ $160,000) has more than 30,000 orders it’s said. The BYD Qin, the BYD Song, and the BYD Dolphin (all NEVs) were the top three selling models in the domestic market. (AutoInformed on: Ford CEO says China is the Main Competitor, Not GM)
“NEVs remained the key market driver, with their sales expanding by 113% YoY in April and 43% YTD. In the first four months of this year, NEVs accounted for 30% of PV sales and 26.8% of total LV sales. We expect that NEV sales will surge strongly in Q4 2023 before the expiry of the temporary purchase tax exemption on NEVs at the end of this year,” LMC said.
AutoInformed notes here that the Biden Administration’s Inflation Reduction Act is actual a climate change and industrial policy bill that has global trade implications among US allies, trading partners and hostile states – say Russia and China. This is leading to the creation of a new term that will replace “offshoring” in trading and policy jargon. How about “friend shoring,” which is starting to emerge in automotive circles. Last year close to ~60% of global electric vehicle sales were Chinese. It is unclear to AutoInformed what US Treasury Secretary Janet Yellen means by “constructive engagement” with China.
This leads to LMC’s observation that Chinese exports were still strong in April. PV exports reached 308,000 units in April, increasing by 232% YoY at 17% of total PV production. Total PV export in the YTD 2023 period reached 1,120,000 increasing 113% YoY. Chery, SAIC, Tesla, Geely and Changan are the leading PV exporters.
“Among them, Chery Group accounted for the largest portion at 23% of the total. Chery was followed by SAIC with 16% and Tesla with 12%. New energy vehicles form the core of China’s automotive export growth. Aside from Tesla’s significant exports from China, the brand value of domestic NEV producers has been gradually increasing in the international market. Assuming that political factors don’t negatively influence proceedings, the export volume of Chinese local brands will continue to rise as long as international brands are not able to offer equally competitive products in the same price range,” LMC said.
The Overall Chinese Market
“The LV wholesales YTD year-on-year growth, which is 7%, has finally turned positive this year, thanks to a relatively good market performance in March and an unusually low base for the same period last year. On the production side, total LV production in April was 2.03 million units, increasing by 76% YoY, but falling by 17% MoM. YTD LV production turned to positive growth of 8%. At the vehicle type level, PV output (87% of LV production share) was 1.76 million units in April which was 780K more than the wholesale volume. The growth ratio of PV in April was 80% YoY and -17% MoM. In the month, LCV output was 266,000, up 55% YoY and increased by 4% YTD,” LMC said.
*LMC Automotive – a GlobalData Company
LMC Automotive is a leading independent and exclusively automotive focused provider of global forecasting and market intelligence in the areas of vehicle sales, production, powertrains and electrification. The company’s global clients include car and truck makers, component manufacturers and suppliers, financial, logistics and government institutions. LMC Automotive is part of the LMC group, as is J.D. Power. LMC is also the world’s leading economic and business consultancy for the agribusiness sector. For more information about LMC Automotive, visit www.lmc-auto.com or contact LMC directly at [email protected].
Chinese April Sales Soft – EV Exports Threaten Global Trade
Click on the U8 for more information.
Chinese light vehicle sales remained soft in April, according to data by the LMC consultancy.* Light Vehicle (LV) wholesales were 2.12 million, growth of 81% year-on-year (YoY) based on LMC’s observation that the year-earlier base was “abnormally low.” Passenger Vehicle (PV) wholesales, 1.85 million, showed an increase of 86% YoY. Light Commercial Vehicle (LCV) wholesales grew to 271,000 – +51% YoY. On a month-on-month (MoM) basis, PV and CV sales fell by 10% and 16%, respectively.
LMC noted that the electrification of the Chinese market “continues to accelerate.” At the Shanghai Auto Show in late April more than 80% of the new models that were displayed were so-called NEVs (New Energy Vehicles). The BYD Yangwang U8 electric SUV (which debuted at Shanghai priced at ~ $160,000) has more than 30,000 orders it’s said. The BYD Qin, the BYD Song, and the BYD Dolphin (all NEVs) were the top three selling models in the domestic market. (AutoInformed on: Ford CEO says China is the Main Competitor, Not GM)
“NEVs remained the key market driver, with their sales expanding by 113% YoY in April and 43% YTD. In the first four months of this year, NEVs accounted for 30% of PV sales and 26.8% of total LV sales. We expect that NEV sales will surge strongly in Q4 2023 before the expiry of the temporary purchase tax exemption on NEVs at the end of this year,” LMC said.
AutoInformed notes here that the Biden Administration’s Inflation Reduction Act is actual a climate change and industrial policy bill that has global trade implications among US allies, trading partners and hostile states – say Russia and China. This is leading to the creation of a new term that will replace “offshoring” in trading and policy jargon. How about “friend shoring,” which is starting to emerge in automotive circles. Last year close to ~60% of global electric vehicle sales were Chinese. It is unclear to AutoInformed what US Treasury Secretary Janet Yellen means by “constructive engagement” with China.
This leads to LMC’s observation that Chinese exports were still strong in April. PV exports reached 308,000 units in April, increasing by 232% YoY at 17% of total PV production. Total PV export in the YTD 2023 period reached 1,120,000 increasing 113% YoY. Chery, SAIC, Tesla, Geely and Changan are the leading PV exporters.
“Among them, Chery Group accounted for the largest portion at 23% of the total. Chery was followed by SAIC with 16% and Tesla with 12%. New energy vehicles form the core of China’s automotive export growth. Aside from Tesla’s significant exports from China, the brand value of domestic NEV producers has been gradually increasing in the international market. Assuming that political factors don’t negatively influence proceedings, the export volume of Chinese local brands will continue to rise as long as international brands are not able to offer equally competitive products in the same price range,” LMC said.
The Overall Chinese Market
“The LV wholesales YTD year-on-year growth, which is 7%, has finally turned positive this year, thanks to a relatively good market performance in March and an unusually low base for the same period last year. On the production side, total LV production in April was 2.03 million units, increasing by 76% YoY, but falling by 17% MoM. YTD LV production turned to positive growth of 8%. At the vehicle type level, PV output (87% of LV production share) was 1.76 million units in April which was 780K more than the wholesale volume. The growth ratio of PV in April was 80% YoY and -17% MoM. In the month, LCV output was 266,000, up 55% YoY and increased by 4% YTD,” LMC said.
*LMC Automotive – a GlobalData Company
LMC Automotive is a leading independent and exclusively automotive focused provider of global forecasting and market intelligence in the areas of vehicle sales, production, powertrains and electrification. The company’s global clients include car and truck makers, component manufacturers and suppliers, financial, logistics and government institutions. LMC Automotive is part of the LMC group, as is J.D. Power. LMC is also the world’s leading economic and business consultancy for the agribusiness sector. For more information about LMC Automotive, visit www.lmc-auto.com or contact LMC directly at [email protected].