China Market H1 2022: Sales Down to 12.05 Million Units, but NEVs Up 2.2 Times to 2.6 Million Units

BYD's sales increased to 647k units; BYD, Tesla, and SAIC-GM-Wuling were the top three NEV sellers




  In the first half (H1) of 2022 (January-June), new vehicle sales in China decreased by 6.5% year-over-year (y/y) to 12.047 million units (on a factory shipment basis, including exports; the same applies below). Production and sales fell from mid-March to April, and from March to May both sales and production volumes were below the previous year's levels. In April in particular, both sales and production volumes declined by more than 45%, and although they recovered in June, a y/y decline in the first half of the year was inevitable.

  By Chinese-affiliated group, the SAIC Motor Group maintained the top ranked position, but its market share declined to 18.1%. Meanwhile, Guangzhou Automobile Group Co., Ltd. (GAC Group) and BYD Co. Ltd. (BYD) performed well. In particular, BYD, which focuses on BEVs (EVs) and PHEVs (PHVs), rose from 10th place in H1 of 2021 to 8th place this quarter with 647,000 units, up 159.6% from the previous year.

  By vehicle type, basic passenger cars (sedans and hatchbacks) overtook SUVs to take the top spot. The number of basic passenger cars sold increased by 6.2% y/y to 4,923,000 units. Commercial vehicle sales decreased for all vehicle types due to a lull in replacement demand to comply with emission standards and delays in infrastructure development.

  By country in the passenger car market, Chinese automakers accounted for 48.0% of the market share with 4,963,000 units. This was followed by Japanese-affiliated companies with a 4.0% y/y decline to 2,163,000 units and German-affiliated companies with an 8.3% y/y decline to 2,039,000 units.

  Sales of New Energy Vehicles (NEVs) in H1 of 2022 increased significantly from 1,206,000 units in the same period last year to 2,600,000 units, of which 2,062,000 were EVs, 536,000 were PHVs, and 1,000 were FCEVs (FCVs). According to the Ministry of Public Security, the number of NEVs owned as of the end of June 2022 was 10.01 million units. By manufacturer, BYD, which ranked six models in the NEV Top 10 models list, rose from 150,000 units in the first half of 2021 to top the list this period with 638,000 units. Tesla followed in second place, followed by SAIC-GM-Wuling Automobile in third place.

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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)
2021 Chinese market: New vehicle sales up 3.8% to 26,275,000 units, NEV sales 3,521,000 units (Feb. 2022)