China's auto sector maintains sound momentum in 2022, NEV sales soar

BEIJING - China's auto market sustained sound growth last year in spite of unfavorable conditions such as COVID-19 resurgences, chip shortages and rising costs of raw materials for power batteries, with sales of new energy vehicles (NEVs) almost doubling.

Auto sales rose 2.1 percent year-on-year to 26.86 million units in the world's largest automobile market in 2022, data from the China Association of Automobile Manufacturers showed Thursday.

In December alone, the country's auto sales totaled approximately 2.56 million units, down 8.4 percent from a year earlier but up 9.7 percent on a monthly basis, the data showed.

NEV market posted another stellar performance last year, driven by rising market demand and a sound policy environment.

China sold about 6.89 million NEVs in 2022, skyrocketing 93.4 percent year-on-year. NEV production soared 96.9 percent from a year earlier to about 7.06 million units.

Thanks to the NEV boom, the market share of NEVs in China's auto market reached 25.6 percent in 2022, up 12.1 percentage points from 2021.

China halved the purchase tax for eligible passenger vehicles last year, as part of a string of supportive measures to spur auto sales and underpin consumption.

Thanks to the policy stimulus and NEV boom, China's passenger car market logged a steady expansion in 2022. Sales of passenger cars stood at 23.56 million units last year, representing a year-on-year increase of 9.5 percent and exceeding 20 million units for an eighth consecutive year.

Exports also made a positive contribution to the growth of the auto market. China exported 3.11 million cars last year, logging a significant increase of 54.4 percent from a year earlier.

The volume extended China's auto exports boom in 2021, which surpassed the 2 million units for the first time and marked a big leap for the auto sector.

Looking forward, the association has expressed confidence in the prospects of China's auto market in 2023, given the recovery of the overall macroeconomy and relative policies to boost consumption and the vitality of market entities.

It is estimated that China's auto market will maintain its stable and sound growth momentum in 2023, and that it will post an increase of about 3 percent, according to the association.