China's Auto Industry Breaks 30 Million Vehicle Milestone in 2023, Setting New Production and Sales Records
The Chinese automotive industry has achieved a historic milestone, with both production and sales surpassing 30 million units for the first time in 2023. According to the China Association of Automobile Manufacturers (CAAM), total vehicle production reached 30,161,000 units, while sales totaled 30,094,000 units, marking an annual growth of 11.6% and 12% respectively, both setting new highs.
"The robust growth of China's auto sector is a testament to the resilience of the industry and the effectiveness of government policies aimed at stimulating consumption and economic growth," said Chen Shihua, Deputy Secretary-General of CAAM.
Within this robust performance, passenger vehicle production and sales stood out, with 26,124,000 units produced and 26,063,000 units sold, representing year-on-year increases of 9.6% and 10.6%, respectively. Commercial vehicle production and sales also experienced significant gains, hitting 4,037,000 and 4,031,000 units, up by 26.8% and 22.1% from the previous year.
The highlight of the year, however, was the stellar performance of new energy vehicles (NEVs). In 2023, China produced 9,587,000 NEVs and sold 9,495,000, marking a remarkable growth of 35.8% and 37.9% compared to 2022. This surge propelled NEVs' market share to 31.6%, underlining their increasing popularity among consumers.
"All major categories of NEVs have seen significant growth, highlighting the diverse range of options now available to customers and the industry's commitment to innovation," added Chen.
The macroeconomic recovery and favorable policy environment, including measures aimed at boosting consumption and supporting stable growth, have been instrumental in driving this robust performance. As China continues to implement policies to promote the high-quality development of the NEV sector, market vitality and consumption potential are expected to further unleash.
Looking ahead, the CAAM and industry insiders are optimistic about the future of China's automotive industry. According to forecasts, the country's auto production and sales are projected to reach 31 million units in 2024, representing a modest year-on-year increase of approximately 3%. NEV production and sales, on the other hand, are expected to soar to around 11.5 million units, a growth rate of roughly 20%.
"The current forecasts, based on extensive consultations with industry players and research institutions, are considered reliable," stated Xin Guobin, Vice Minister of Industry and Information Technology, at a press conference held by the State Council Information Office. "However, further analysis and validation will be conducted to ensure accuracy."
To sustain this positive momentum, the Ministry of Industry and Information Technology (MIIT) vows to collaborate with relevant departments to strengthen macroeconomic guidance and industry management, thereby promoting the high-quality development of the automotive sector.
"We are confident that with continued support from the government and the relentless pursuit of innovation by automakers, China's automotive industry will continue to thrive, setting new benchmarks in the years to come," concluded Xin.
