2022 Chinese Market: New Vehicle Sales Up 2.2% to 26,864,000 units, Major Increases by BYD and Tesla

Chinese manufacturers account for majority of passenger cars; 6,887,000 NEVs sold




  For the full year of 2022, new vehicle sales in the Chinese market increased by 2.2% year-over-year (y/y) to 26,864,000 units (based on factory shipments, including exports). The first half of the year was significantly affected by urban lockdowns caused by the COVID pandemic. The single month of April saw a significant drop in sales, down 47.6% y/y to 1,181,000 units. Due in part to the government's consumption stimulus measures from June onward, the market grew by 29.4% y/y to 7,414,000 units in the third quarter. According to a January 2023 announcement by the China Association of Automobile Manufacturers (CAAM), sales are expected to increase by about 3% in 2023.

  By corporate group, the top three groups in sales are SAIC, FAW, and Dongfeng, the same as in 2021. In fourth place is the GAC Group, whose own-brand NEVs are performing well. Changan Automobile Group took fifth place, and in sixth was BYD, which boasts sales approximately 2.5 times higher than in 2021.

  In the passenger car market, Chinese manufacturers performed well with 11,949,000 units, up 23.0% from the previous year, accounting for half of the market. All three Germany-based companies increased their sales volumes over the previous year. On the other hand, Japanese manufacturers, with the exception of the Toyota Group, performed poorly and their aggregate market share was lower than that of their German counterparts. U.S. manufacturers saw their market share fall below 10% due to the poor performance of Ford and GM, although Tesla performed well.

  Sales of NEVs increased significantly from 3,521,000 units in 2021 to 6,887,000 units in 2022. The best-selling NEV passenger car in China continues to be the Wuling Hongguang MINIEV with 573,000 units sold. In second place was the Tesla Model Y, and in third place was BYD's Song DM. The NEV subsidy, which had been in place since 2018, ended in December 2022, but the tax incentives for NEV purchases will continue through December 2023.

  In 2022, the number of vehicles exported was 3,111,000 units, about 1.5 times that of the previous year, of which 679,000 were NEVs. Imported passenger car sales continued to be led by the Lexus brand.


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