Chinese Market Q2 2022: Chinese Automakers Focus on Improving Production Systems for Drive Batteries

BMW expanding production capacity; Honda and Audi to build new EV plants



BMW Brilliance Shenyang Lydia Plant (Source: BMW)

 According to data released by the China Association of Automobile Manufacturers (CAAM) on July 11, 2022, vehicle sales declined 6.6% year-over-year (y/y) to 12,057,000 units in the January-June period of 2022, mainly due to plant shutdowns caused by the lockdowns to curtail the spread of COVID-19. The breakdown of vehicles sold is 10,355,000 passenger cars and 1,702,000 commercial vehicles. Sales of New Energy Vehicles (NEVs) in the January-June period of 2022 were 2.60 million units, up 115.0% from the same period last year, reflecting a market share of 21.6%. Furthermore, the ratio of NEV passenger cars to total passenger car sales was 24.0%.

 This report presents key trends in the Chinese market for Chinese automakers and major foreign automakers in the second quarter of 2022. Chinese manufacturers are accelerating business development in the field of drive batteries. SAIC-GM-Wuling has begun construction of a drive battery plant in Liuzhou City, where its manufacturing site is located. Dongfeng Motor Group Co., Ltd. (Dongfeng) and Sunwoda Electronics Co., Ltd. (Sunwoda) have jointly established a battery development company. Guangzhou Automobile Group Co., Ltd. (GAC Group) announced its next-generation battery technology, and a drive battery company under its umbrella started construction of a production facility in Guangzhou City. Zhejiang Geely Holding Group Co., Ltd. (Geely) began construction of a 12GWh drive battery plant in Fuling, Chongqing as a joint venture with power and energy storage battery manufacturer Farasis Energy Co., Ltd. (Farasis Energy). BYD Co. Ltd. (BYD) is pursuing several drive battery factory projects.

 A major foreign-affiliated manufacturer promoted a project to promote electrification. The first EV plant in China under the Audi brand has started construction in Changchun. Mercedes-Benz's next-generation battery from China rolls off the production line, and BMW's third vehicle plant in Shenyang, which produces the i3 EV sedan, goes into operation, expanding its annual production capacity to 830,000 units. Honda Motor Co., Ltd. plans to build an EV plant in Guangzhou and also announced its electrification product plan. Nissan Motor Co., Ltd. is expanding its R&D facilities and vehicle renovation projects. In addition, Hyundai Motor Company (Hyundai) and SAIC-GM's Buick brand have announced plans for electrified products.

Related reports:
China Emerging EV Automakers (2): A Second Group Closes in on the Leaders & Entry of IT Giants (Jun. 2022)
China Emerging EV Automakers (1): Expanding Production and Promoting Carbon Neutrality (Jun. 2022)
Chinese Market Q1 2022 (2): Major non-Chinese OEMs restructure joint ventures and localize R&D (May. 2022)
Chinese Market Q1 2022 (1): SAIC, FAW, BYD, etc. accelerate development in battery and energy fields (May. 2022)
FAW: Aiming for 6.5 Million Units Sales and 20% NEV Ratio By 2025 (Mar. 2022)
BYD: Car sales up 75% to 730k in 2021, in-house NEV development (Mar. 2022)
2021 Chinese market: New vehicle sales up 3.8% to 26,275,000 units, NEV sales 3,521,000 units (Feb. 2022)


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