Chinese Market Q2 2023: Major State-owned and Non-Chinese OEMs Announce NEV Strategies

SAIC promotes AI; Ford and Hyundai revise their China strategies

2023/08/01

Summary
Trends of Chinese manufacturers (Q2 2023)
Trends of major non-Chinese manufacturers (Q2 2023)
Policies related to China's automotive industry (Q2 2023)

Summary

Hyundai Motor's Fuel Cell System Plant in Guangzhou (Source: Hyundai Motor)

　According to an announcement by the China Association of Automobile Manufacturers (CAAM) on July 11, 2023, in the first six months (January-June) of 2023, sales (factory shipments) in China increased 9.8% year-over-year (y/y) to 13,239,000 units, of which passenger car sales grew 8.8% y/y to 11,268,000 units, and commercial vehicle sales increased by 15.8% y/y to 1,971,000 units. Sales of New Energy Vehicles (NEVs: battery electric vehicles, plug-in hybrids, and fuel cell vehicles) in the same period grew 44.1% y/y to 3,747,000 units, comprising 28.3% of the Chinese market.

　This report presents key trends in the Chinese market for Chinese and major foreign automakers in the second quarter of 2023. Several state-owned vehicle manufacturers have announced plans to convert to NEVs. The SAIC Group aims to increase annual sales of NEVs to 3.5 million units by 2025, of which 70% will be under its own brands. The FAW Group aims to increase the sales volume of NEVs to 1.45 million units by 2025, of which more than 50% will be under its own brands. Dongfeng Motor plans to launch 18 NEV passenger car models and increase the proportion of its own-brand NEVs to 50% of passenger cars by 2025. The GAC Group's Trumpchi brand plans to switch to XEV (PHEV (plug-in hybrid); REEV (range extender EV); and HEV (hybrid). Deepal Auto, an EV brand under Changan Automobile, plans to launch six models by 2025 and aims to sell more than 1 million units within five years.

　Major foreign automakers have also accelerated their shift to electrification and announced plans to introduce electric vehicles one after another. VW will build an EV R&D center and a procurement center in Anhui Province, and launch over 30 EV models by 2030. BMW announced that it will release 11 EV models in 2023. General Motors plans to release more than 15 EV models based on the Ultium platform by the end of 2025. Honda plans to launch 10 EV models by 2027 and achieve an EV sales proportion of 100% by 2035. Nissan plans to launch seven EV models by 2026, and the Venucia brand plans to launch at least two new NEV models each year. Hyundai plans to complete construction in Guangzhou of its first fuel cell system plant outside Korea, and sell 1,500 FCVs (fuel cell vehicles) by 2024.

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