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English|China Auto Sales Snap Three-Year Annual Decline as NEV Sales More Than Double

BEIJING, January  12 (TMTPOST)—China’s automobile market managed to snap a three-year streak of sales decline last year, showing more signs to weather the global supply chain disruptions in the wake of Covid-19 pandemic including the chip shortage.   
English|China Auto Sales Snap Three-Year Annual Decline as NEV Sales More Than Double
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Source: Visual China
The sales and outputs totaled 26.082 million vehicles and 26.275 million vehicles in 2021, rising 3.4% and 3.8% respectively from a year earlier, and recorded their first annual increases since 2017, China Association of Automobile Manufacturers (CAAM) disclosed on Wednesday. The overall sales in December had a 1.6% fall year-over-year (YoY), but sales of new energy vehicles (NEVs), a key drive for the whole industry’s sales including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and other non-fossil fuel-powered vehicles, more than doubled to a record of 531,000 units, according to CAAM.

English|China Auto Sales Snap Three-Year Annual Decline as NEV Sales More Than Double
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Annual NEV Sales and Growth from 2013 to 2021
As one of bright points in the sector, NEV saw a penetration rate of 19.1% last month and the new energy passenger cars’ even reached higher penetration to 20.6%. There were 3.521 million NEVs sold in the year 2021 in China, nearly 1.6 times more than the previous year, and suggested a seven-year reign at the top of the world’s NEV sector with a market share of 13.4% in the country, well above 2020’s share 5.4%.
Prior to CAAM’s disclosure, another China’s industry body released the sales of passenger cars on Tuesday and reflected the same trend. The sales in December decreased 7.9% to 2.105 million units from a year ago and 20.146 million cars were sold in the whole year of 2021, representing a 4.4% YoY growth and the end of a three-year decline, according to China Passenger Car Association (CPCA).
【English|China Auto Sales Snap Three-Year Annual Decline as NEV Sales More Than Double】CPCA’s data showed sales of NEV had YoY increases of 128.9% and 169.1% in last month and the year respectively, and the monthly sales of 475,000 vehicles made the annual sales increased to almost 3 million, accounting for about 30% of the yearly sales. CPCA noted Tesla China that month had a robust growth of 196.6% in sales which topped 70,000 units. Such monthly sales result made the U.S. maker’s China unit delivered more than 484,000 EVs for the year, suggesting about 52% of annual delivery for the year made in Shanghai Gigafactory. The association also expected the domestic auto market would turn into a big play ground for NEVs this year.

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