17 Dec 2021

(Yicai Global) Dec. 17 — China’s new energy vehicle sales are expected to increase 1.5 times to 3.4 million this year and 47 percent to 5 million next year, according to the China Association of Automobile Manufacturers.

Overall auto sales may dip 3.1 percent to 26.1 million in 2021 from last year, the CAAM said in a statement published on its official WeChat account today. Passenger vehicle sales likely rose 5.6 percent to 21.3 million, while commercial vehicle sales could have fallen 6.4 percent to 4.8 million.

Next year, total auto sales may grow 5.4 percent to 27.5 million, the CAAM predicted. Passenger vehicle sales may gain 8 percent to 23 million. Commercial vehicle sales may fall 6 percent to 4.5 million.

The Chinese auto market, the world’s biggest, will maintain moderate growth overall in the future, CAAM Deputy Secretary-General Chen Shihua said at the annual China Auto Market Development Forecast Summit on Dec. 14.

From a long-term viewpoint, the market is still transitioning from the early stage of universal automobile use to the next stage, Chen said, adding that there is a difference of about two to four years in the time spent in the popularization of automobiles in motor developed countries.

China’s auto production and sales are at the end of a short-term adjustment and will maintain moderate growth in the future, he noted.

The CAAM did not provide reasons for the growth in sales of NEVs.

The economy’s recovery, the improvement in the economic situation of low- and middle-income groups, and national policy support, will all promote the sound development of the Chinese market, the CAAM said.

China’s auto sales are expected to reach about 30 million in 2025, it added.

Editor: Peter Thomas