Car Exports Shine as a New Luminescent Spot in the Auto Industry

May 30
07:20

2024

jodie mht

jodie mht

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The global automotive industry is witnessing a significant shift, with car exports emerging as a new luminescent spot. Independent brand car sales have reached 2.6651 million vehicles, marking a 1.77% increase and accounting for 29.05% of total car sales. However, the market share has seen a slight decline of 1.50% compared to the previous year. This article delves into the nuances of this trend, backed by data and expert insights.

Overview of Car Production and Sales

Annual Production and Sales Trends

According to the China Association of Automobile Manufacturers (CAAM),Car Exports Shine as a New Luminescent Spot in the Auto Industry Articles car production in 2021 surpassed the previous year's level, reaching approximately 18 million vehicles. This represents a growth of over 2% compared to the previous year. However, this growth fell short of the earlier forecast of a 10% increase. The discrepancy is attributed to the underestimated impact of macroeconomic factors and the phasing out of certain car purchase incentives.

Historical Sales Data

The rapid growth of China's auto market has decelerated significantly. In 2009, Chinese auto sales grew by an impressive 46.15%, followed by a 32.37% increase in 2010. However, the first 11 months of 2021 saw a modest growth of only 2.56% (CAAM, 2021).

Year Sales Growth (%)
2009 46.15
2010 32.37
2021 2.56

Factors Influencing the Market

Policy Changes and Economic Factors

Several policies that previously boosted car sales, such as car purchase tax incentives and subsidies for rural car purchases, were canceled in 2011. Additionally, rising oil prices and restrictions on car purchases in major cities contributed to the slowdown. The energy-saving subsidy policy adjustment also had a noticeable impact. The threshold for subsidies was raised, resulting in nearly 400 car models being excluded from the subsidy list.

Monthly Sales Fluctuations

Despite a month-on-month increase in car sales, October and November 2021 saw negative growth rates of 2.42% and 1.07%, respectively. Historically, November has been a peak month for car sales, with year-on-year increases of 96.43% in 2009 and 26.86% in 2010 (CAAM, 2021).

Performance of Different Car Segments

SUVs, MPVs, and Buses

The SUV, MPV, and bus segments have shown robust growth, with SUVs experiencing an 18.38% year-on-year increase in sales before November 2021. MPVs also saw a cumulative sales increase of 14.29%, while buses maintained a growth rate of over 10%.

Passenger Cars

In November 2021, independent brand passenger car sales reached 570,700 units, a 14.47% month-on-month increase but a 6.30% year-on-year decline. Market share for independent brands fell by 2.99% compared to the same period the previous year. In contrast, Japanese, German, and Korean brands saw market share increases of 1.14%, 1.13%, and 0.36%, respectively.

Brand Origin Market Share (%) Year-on-Year Growth (%)
Japanese 19.81 1.14
German 15.79 1.13
Korean 8.11 0.36
Independent 29.05 -1.50

Future Outlook for Independent Brands

Challenges and Opportunities

Dong Yang, Secretary-General of CAAM, emphasized that independent brands are still in their nascent stages compared to joint ventures. He believes that these brands need time to mature and compete effectively. "Future independent brands will face more severe challenges," Dong Yang stated, highlighting the need for collective efforts to support their development.

Economic Efficiency Indicators

Despite the challenges, the economic efficiency indicators for the auto industry remain positive. Key enterprises in the sector achieved a total industrial output value of 386.822 billion yuan, a 7.02% increase. Sales revenue reached 1.9 trillion yuan, up by 9.81%, and total profits were nearly 188.748 billion yuan, marking an 8.04% year-on-year increase (CAAM, 2021).

Conclusion

The car export market is becoming a significant focal point in the global automotive industry. While independent brands face challenges, their growth potential remains promising. With strategic support and time, these brands can mature and compete on a global scale. The industry's economic indicators suggest a resilient market, poised for future growth.

For more detailed statistics and insights, you can refer to the China Association of Automobile Manufacturers and Statista.

Sources:

  • China Association of Automobile Manufacturers (CAAM)
  • Statista