China Market H1 2023: New Vehicle Sales at 13.24 Million, NEV Sales Up 44.1% to 3.747 Million

BYD up 94.2% to 1.256 million; Japanese automakers slumping, Chinese exports growing

2023/08/21

Table of contents

Summary
New vehicle sales in H1 2023 up 9.9% y/y to 13.24 million units
Sales by Group: SAIC's share fell to about 15%, while BYD rose to third place with a 94.2% sales increase
Market share by vehicle type: SUVs at 42.8%, MPVs share rising
Passenger car market: Chinese automakers have a 54.3% share, BYD is the top with 1.248 million units, Japanese automakers are sluggish with 1.749 million units
Exports of finished vehicles increased 75.7% to 2.14 million units, with the Mercedes-Benz brand topping imports
Top 3 NEV sellers are BYD, Tesla, and GAC Aion
China H1 2023 vehicle sales (ex-factory) by major groups
GlobalData Production Forecast: Chinese light vehicle production will reach 29.2 million units in 2026

Summary

In the first half of 2023 (H1, January-June), new vehicle sales in the Chinese market increased by 9.9% year-over-year (y/y) to 13,239,000 units (based on factory shipments, including exports, the same applies below), which was on par with the sales volume in H1 2017 (13.35 million units), before the COVID pandemic. Production volume increased by 9.3% y/y to 13,236,000 units.

By Chinese group, SAIC Motor Group continued to lead the market, but its market share decreased from 18.1% last year to 15.3%, partly due to the sales decline of three of its joint ventures with overseas-based automakers. On the other hand, BYD rose to third place from eighth last year. In fourth place is the GAC Group, whose own-brand vehicles performed well.

By vehicle type, SUVs accounted for 42.8% of the total market with sales of 5,665,000 units, up 16.0% from the same period last year. MPV sales exceeded 500,000 units, up 29.0% year-over-year. The commercial vehicle market grew 16.0% y/y to 1,971,000 units, with increases in trucks, buses, and semi-trailers.

In the passenger car market, sales by Chinese automakers increased by 23.3% y/y to 6.121 million units, accounting for more than half of the total. All Japanese-affiliated automakers, with the exception of Isuzu, posted year-over-year declines, with sales volume of 1.749 million units and market share falling to 15.5%. Ford and the Hyundai Motor Group are in the process of reviewing their strategies in China.

Sales of NEVs, (New Energy Vehicles: battery electric vehicles (EVs), plug-in hybrids (PHV) and fuel cell vehicles (FCV)) in H1 2023 were 3.747 million units, up 44.1% from the same period last year. EVs numbered 2.719 million units, PHVs 1.025 million units, and FCVs 2,000 units. According to statistics from China’s Ministry of Public Security, there were 16.2 million NEVs in the country at the end of June 2023.

By NEV manufacturer, BYD saw a significant increase from 638,000 units last year to 1,191,000 units this year. SAIC-GM-Wuling Automobile, which ranked third last year, fell to seventh place. GAC Aion, whose Aion series is performing well, took third place.

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