Chinese passenger car market grows strongly in the first 10 months of 2022
- China records a strong increase in new car registrations in 2022, despite a rather weak economic growth at the moment (this year it is not expected to exceed 3-4%), due to the slowdown in Chinese and global demand (especially in China due to the "zero covid" policy and generally globally due to the war in Ukraine): +14.0% for the cumulative 10 months of 2022 compared to the cumulative 10 months of 2021, compared to +9.1% for the first quarter of 2022, +3.5% for the 2022 half year period, due to a disastrous April following the return of the Covid 19 crisis, and +14.4% for the 9 months period of 2022 thanks to a catch-up in June, July, August and September 2022.
- We are expecting for the end of the year a volume of 24 million passenger cars sold in China, which would be above the volume of 2018, 2019, 2020 or 2021. However, this would still be below 2016 or 2017 levels (24.5 million passenger cars per year). The good health of the Chinese passenger car market is fueled by the sales boom in electric cars.
- However, there is a disconnection between passenger car and utility vehicle (UV) sales, as the Chinese commercial vehicle market will decline significantly in 2022 compared to 2021 (-32.0%), a year that already saw a 3.0% decline compared to 2020. The year is expected to end with a volume of 3.3 million UVs sold in China, down from 4.8 million units in 2021 and 5.1 million units in 2020.
- This decline in UVs sales is a good example of the decline in economic growth in China in 2022, as UVs sales are directly linked to a country's industrial and commercial activity. China is now talking about the risk of a global recession.
Contact us: info@inovev.com