New vehicle sales in China surged 28% to 2,382,000 units in May 2023 from weak year earlier sales of 1,862,000, according to passenger car and commercial vehicle wholesale data released by the China Association of Automobile Manufacturers (CAAM).
The market last month continued to rebound from last year’s pandemic lows, when the government implemented widespread Covid lockdowns across the country.
Economic growth accelerated to 4.5% in the first quarter after plunging to a multi decade low of 3% in 2022. Full year growth was forecast to return to above 5% in 2023, helped by by new government economic stimulus measures.
Total vehicle sales in the first five months of the year were up by 11% at 10,617,000 units from 9,555,000 in the same period a year earlier with sales of passenger vehicles rising 11% to 9,001,000 units while commercial vehicle sales were up by 14% at 1,616,000.
Sales of new energy vehicles (NEVs) surged 60% to 717,000 units in May and 47% to 2,940,000 year to date (YTD). Deliveries of battery powered electric vehicles (BEVs) increased 35% to 2,146,000 units in the five month period while hybrid sales surged 92% to 794,000 units.
Sales of conventional vehicles in China, excluding NEVs, fell 2% to 7,677,000 units YTD.
Vehicle exports soared 81% to 1,758,000 units YTD while overall vehicle production increased 11% to 10,687,000, helped by improving supplies of semiconductors after last year’s severe supply chain disruption.
Manufacturer performances
The country’s largest vehicle manufacturing group, Shanghai-based SAIC Motor, reported a 5% fall in global sales to 1,665,916 YTD, reflecting sharp decline earlier in the year. Overseas sales surged 48% to 438,455 units. At the beginning of the year, the group set a target to increase global sales 13% to 6m vehicles in 2023, including 1.5m NEVs.
Sales by SAIC-Volkswagen dropped 9% to 407,456 units YTD while Shanghai-GM sales were 6% lower at 357,958 units. SAIC-GM-Wuling was the worst-performing joint venture with sales plunging 19% to 480,100 units while SAIC Motor passenger vehicle sales were 19% higher at 338,398 units and SAIC Maxus sales were up 21% at 87,452 units.
BYD Auto reported a 98% surge in global NEV sales to 996,476 units YTD, including 63,750 overseas sales. Deliveries of plug in hybrid models doubled to 507,862 units while BEV sales jumped 92% to 488,614. The company aimed to sell 3m vehicles in 2023.
GAC Group sales fell 1.2% to 926,705 units YTD while Dongfeng Motor Group sales were 23% lower at 766,365.
Geely Auto reported a 13% rise in five-month sales to 556,148 units, including a 52% surge in exports to 64,776 units while Great Wall Motors’ global sales were down slightly to 414,095 units.
Total shipments from the Tesla Shanghai plant rose 77% to 382,000 vehicles YTD, including 213,000 (+84%) for local sale and 163,000 (+69%) for export.
