Total sales in the world’s largest car market grew 3.8% year-on-year, after monthly sales of 2.79 million vehicles in December hit 26.28 million in 2021
see photosLast month, CAAM said it expects automobile sales to grow 5.4% this year to 27.5 million
China’s auto sales last year rose for the first time since 2017, industry data showed on Wednesday, partially offset by a 1.5-fold jump in new energy vehicle (NEV) sales. Data from the China Association of Automobile Manufacturers (CAAM) showed that overall sales in the world’s largest car market grew 3.8% year-on-year after monthly sales of 2.79 million vehicles in December.
Production and sales are expected to improve in 2022 compared to last year on the prospect of mitigating issues such as chip shortages and high raw material prices, CAAM said in a statement.
After decades of upbeat growth, China’s car market began to contract in 2018 under pressure from some tax cuts, a trade war between Washington and Beijing and the fallout from the COVID-19 pandemic.
The market began to bounce back by the mid-2020s but was pulled down by a global shortage of semiconductors, which are used in everything from brake sensors to power steering to entertainment systems, which have led to global warming. Automakers used to cut or suspend production.
China’s auto sales in December fell 1.6% from the year-ago period, eight consecutive monthly declines, CAAM data showed.
China to cut subsidies on electric cars such as NEVs by 30% in 2022
But sales of NEVs, including battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, were a bright spot, showing strong momentum, growing 157.5% to 3.52 million units in 2021.
In December alone, 531,000 NEVs were sold, representing an increase of 114% year-on-year. China has given a huge boost to NEVs in recent years as part of its efforts to curb air pollution.
Last month, CAAM said it expects automobile sales to grow 5.4% to 27.5 million this year, and NEV sales to rise 47% to five million.
China will cut subsidies on NEVs such as electric cars by 30% in 2022 and withdraw them completely at the end of the year, assuming the market is mature enough for demand to grow without the aid of government aid .
But while China’s EV market is seeing very strong growth, most foreign automakers have fallen behind their Chinese counterparts in designing smart cars that appeal. Tesla is the only foreign brand in the top ten.
On Tuesday, data from another Chinese Auto Association showed that US electric vehicle maker Tesla Inc. sold a record 70,847 China-made vehicles in December.
Volkswagen said it missed its target of selling 80,000 to 100,000 units from its ID battery electric range last year, with 70,625 vehicles sold, but it expects sales to double this year.
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