China Auto Business Group Cuts Car Gross sales Progress Forecast for 2022

(Yicai World) July 11 — China’s automobile gross sales will rise 3 % this yr, a key {industry} group forecast right this moment, lower than the 5.4 % achieve it predicted final December, due to a decline in demand for industrial automobiles.

The China Affiliation of Car Producers scaled down its expectations for the yr to 27 million models from 27.5 million as a result of it anticipates a 16 % hunch in gross sales of business automobiles like buses and vans to 4 million.

The decrease development forecast was made regardless of a surge in gross sales and manufacturing because the begin of final month as China’s auto {industry} makes a full restoration from the affect of Covid-19 outbreaks this yr.

Car gross sales jumped 28 % to 2.49 million in June, whereas output climbed 24 % to 2.5 million because of the availability chain restoration coupled with the halving of buy tax and native authorities insurance policies to advertise auto shopping for. Manufacturing of latest power automobiles climbed 1.3 occasions to 248,000, and gross sales soared 1.4 occasions to 256,000, setting new report highs. Exports jumped 57 % from a yr in the past to an all-time excessive of 246,000.

The CAAM additionally predicted a 56 % achieve in NEV gross sales to five.5 million this yr.

Elaborating on the difficulties confronted by the auto sector, the CAAM mentioned that because the second half, chip provides have been tight and costs have risen sharply. Automakers are choosing up the tempo of manufacturing and provide, however the threat of some chip shortages and mismatches nonetheless exists.

NEV manufacturing prices are nonetheless underneath strain because of the steady rise in costs of uncooked supplies for energy batteries. However with regular enchancment in lithium useful resource manufacturing capability at dwelling and overseas, costs of energy batteries and associated uncooked supplies will return to an affordable vary in future, the CAAM identified.

China’s macro financial system is now choosing up, however the restoration’s basis isn’t but strong, the group mentioned. Stimulus insurance policies in additional than 30 % of China’s areas had lapsed earlier than the tip of June, that means the comparatively brief interval was not conducive to regular development within the second half. So the insurance policies to encourage auto shopping for nonetheless want extra time.

Within the first six months of this yr, China’s auto manufacturing and gross sales have been 12.12 million and 12.06 million models, respectively, down 3.7 % and 6.6 % yr on yr. Output and gross sales of NEVs reached 2.66 million and a pair of.60 million, each up 1.2 occasions from the identical interval of final yr. Exports jumped 47 % to 1.22 million.

Editor: Peter Thomas

https://www.yicaiglobal.com/information/china-auto-industry-group-cuts-vehicle-sales-growth-forecast-for-2022

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