From January to June 2022, a total of 4.891 million Chinese brand passenger cars were sold, with a year-on-year increase of 16.5% From China Automobile Industry Association

The following is the From January to June 2022, a total of 4.891 million Chinese brand passenger cars were sold, with a year-on-year increase of 16.5% From China Automobile Industry Association recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.

It took only two years for Chinese auto brands to return from the bottom to the peak of market share. With the decline of passenger car market share of German and Japanese brands, the market share of Chinese auto brands has increased rapidly and is further approaching the red line of 50%.

Image source: China Automobile Industry Association

According to the data released by the China Association of automobile manufacturers a few days ago, a total of 4.891 million Chinese brand passenger cars were sold from January to June, with a year-on-year increase of 16.5%, much higher than the overall growth rate of 3.4% in the passenger car market, which also made the proportion of Chinese brands in the total sales of passenger cars reach a new high of 47.2%. Among them, 994000 vehicles were sold in June, accounting for 44.8% of the total sales of passenger cars. Two years ago (June 2020), the market share of Chinese brand cars fell to the lowest level since 2009 – only 33.5%.

In the past two years, the automotive market has faced multiple tests, such as shutdown, global core shortage, rising raw material prices, and tight supply chains. In a complex environment, it is particularly difficult for Chinese brands to achieve a significant increase in market share.

Chenshihua, Deputy Secretary General of the China Association of automobile manufacturers, analyzed that the expansion of the market share of Chinese brand passenger cars benefited from three reasons: first, Chinese brand passenger cars comprehensively promoted the brand upward, further narrowing the gap with foreign advantageous automobile enterprises; Second, the advantages of Chinese brands in the field of new energy vehicles have taken the lead by accelerating the integration with intelligent Internet connection, and even surpassed joint venture brands in some technical fields; The third is to accurately grasp China’s automobile consumption market and rely on the advantages of local supply chain.

With nearly half of the overall market share, are Chinese auto brands really proud?

Leveraging new energy

New energy vehicles have a significant pulling effect on the leading car enterprises of Chinese brands. With the continuous progress of the domestic automobile industry, more and more young consumer groups have a higher acceptance of domestic models. As a “new thing”, electric and intelligent models are more favored by young consumer groups.

Image source: passenger car market information joint meeting

The list of manufacturers’ retail sales from January to June 2022 at the passenger car market information joint meeting shows that among the top three car companies, Chinese brands occupy two seats, followed by FAW Volkswagen, namely Chinese brands BYD and Chang’an automobile.

It is worth noting that in the top 15 list of sales, 12 auto companies have seen sales decline, while BYD has achieved a year-on-year increase of 168%, ranking second with 638500 vehicles.

BYD previously announced that it would stop the production of fuel vehicles from March 2022 and would focus on pure electric and plug-in hybrid vehicles in the future. It mentioned in the minutes of the investor meeting that the sales target in 2022 is conservatively expected to be 1.5 million vehicles, and if the supply chain improves, it will impact 2million vehicles. In addition, the data released by BYD also showed that the total installed capacity of power batteries and energy storage batteries of BYD new energy vehicles in the first half of 2022 was about 34.04gwh, an increase of 167.90% over the same period last year.

Image source: Chang’an Automobile

Chang’an Automobile ranked third with 558700 units. According to the data released by Chang’an Automobile, new energy vehicles are also the segment market with the highest growth rate of Chang’an automobile. Among them, the cumulative sales volume of self owned brand new energy in the first half of the year was 84958, a year-on-year increase of 127.3%.

It can be said that the rapid rise of the new energy vehicle market has driven the growth of Chinese automobile brand sales. Data show that in 2021, China accounted for 52% of the world’s sales of new energy vehicles. By may 2022, the sales volume of new energy vehicles in China has climbed to a high of 59% in the world, and the new energy vehicle market has become the only segment that has achieved positive growth in the first half of 2022.

Cui Dongshu, Secretary General of the national passenger car market information joint committee, analyzed that under the background of high oil prices, more and more consumers are willing to choose new energy vehicles. At the same time, a large number of early car buyers gradually enter the purchase cycle, and the potential demand of the new energy vehicle market is relatively strong.

With the rapid growth of this market, the China Association of automobile manufacturers also adjusted the annual sales of domestic new energy vehicles in 2022 to 5.5 million. Previously, this was expected to be 5million vehicles. The year-on-year growth rate is expected to increase from 47% to more than 56%, an increase of more than 9 percentage points.

This ebbs and flows

In the past two years, the global automotive industry has faced severe challenges, including not only the shutdown caused by the COVID-19, but also the tests brought by the global lack of cores, rising raw material prices, and tight supply chains.

In the first half of this year, the epidemic hit Shanghai, Changchun and other places, which are also the headquarters of many joint venture and foreign-funded brands in China. Including SAIC Volkswagen, SAIC General Motors, FAW Volkswagen, FAW Toyota, Tesla and other auto companies have experienced downtime.

It is worth noting that it was in April this year that the market share of Chinese brands once soared to a high of 57%. Until the middle and late April, the local vehicle enterprises located in Shanghai, Jilin, Changchun and other places successively welcomed the resumption of work and production; Since May, the production and sales of joint venture car enterprises began to rebound. With the recovery of head joint venture brand production, the market share of independent brands has gradually fallen.

However, for auto brands that have experienced shutdown, the impact of the epidemic on the first half of the year is still very obvious. According to the data of the national passenger car market information joint meeting, although FAW Volkswagen ranked first in sales in the half year with 863100 vehicles, the year-on-year decline was 15.9%; SAIC Volkswagen’s sales volume in the first half of the year was 533000 units, ranking fourth, down 27.3%; SAIC GM sold 468200 vehicles, down 33.1%. To a certain extent, this gives Chinese brands the opportunity to counter the super market.

At the same time, the industry problem of core shortage has also hit the global automotive industry. According to the latest data of autoforecastsolutions (hereinafter referred to as AFS), a prediction company in the automotive industry, as of June 12, due to the shortage of chips, the cumulative production reduction in the global automotive market this year was about 2230400 units. AFS also predicts that the cumulative production reduction in the global auto market this year will climb to about 3.04 million.

In terms of regions, China has reduced the production of 107300 vehicles due to lack of cores so far this year. On the whole, the cumulative production reduction in China’s auto market is not large, and the growth rate of production reduction is slow; Europe and North America are still the two regions with the largest cumulative production reduction due to lack of cores in the world, and the production reduction this year is expected to exceed one million.

“The worldwide lack of cores and resources has led to the reduction of automobile production in Europe, America, Japan and other countries.” Cui Dongshu believes that under the background of global car shortage, Chinese auto brands have also ushered in export opportunities. “The market demand in Southeast Asia and other places is still strong, and the product power of China’s automobile industry has increased significantly in recent years, directly driving the growth of export data.” Cui Dongshu said.

China Automobile Industry Association said that in recent years, with the continuous improvement of the comprehensive competitiveness of China’s automobile products, Chinese brands have been more recognized in the international market. At the same time, enterprises are also actively seizing opportunities and vigorously exploring the international market, especially new energy vehicles, which have become the current export highlights. Some enterprises have successfully entered the markets of developed countries and regions such as Europe.

According to the data of China Automobile Industry Association, the export of China’s automobile enterprises from January to June reached 1.218 million, an increase of 47.1% year-on-year.

Facing the impact of uncertain factors such as lack of core and epidemic, joint venture brands are under greater pressure, which also makes Chinese brands perform better in the semi annual sales list. However, the joint venture brand is also accelerating the transformation of electrification. With the gradual alleviation of the lack of core and the control of the epidemic, the joint venture brand is also brewing a counterattack to regain its lost market share.

Although legal and Korean car brands are declining, the original market has been occupied by Chinese car brands. However, German and Japanese brands with stable foundation and public praise still have strong competitiveness. With the initiative in the field of new energy and the love of young consumer groups for “national trend”, it is still too early to see whether Chinese auto brands can hold the market, or even continue to make rapid progress, and break through the “red line” of 50% market share at one stroke.

Read more from China Newsweek: Passenger Car Association: ranking list of new energy car sales in January 2022 Passenger Car Association: in June 2022, the domestic narrow passenger car market sales reached 1944000, with a year-on-year increase of 22.7%. Passenger Car Association: in May 2022, the domestic new energy narrow passenger car sales reached 360000, with a year-on-year increase of 91.2%. China Automobile Industry Association: a brief introduction to the operation of the automobile industry in May 2021. China Automobile Industry Association: the top ten car brand sales in March 2022 The volume ranks a new record 10000+ the monthly complaint of Chinese cars hit a 10-year high. The car Association: in May 2021, the sales volume of car enterprises ranked first in China. Your uncle or your uncle! After three months, GL8 returns to the peak of the weapon spectrum. In 2021, the cumulative sales of cars in Chengdu reached 547033, ranking the third in China. Tencent cars: survey report on women’s car purchase demand and car use habits in 2022. 60% of female users like SUV. Research Institute of easy cars: 2021 version of Geely Automobile market competitiveness analysis report (attached) Ride Association: the new forces of domestic car making were collectively sad in 2022. Auto bloggers: in January 2022, the global sales of new energy vehicles reached 603000 Tesla Model y first insideevs: in Q2, Tesla ranked first with 250000 pure electric vehicles. Ride Association: in April 2022, the sales volume of China’s car market was 1043000, a year-on-year decrease of 35.5%

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