Auto industry recovers in China
Against the background of the repeated pandemic, insufficient domestic demand and constrained supply chain, China‘s auto industry has managed to bounce back with positive growth.
According to statistics from the China Association of Automobile Manufacturers, China’s automobile production and sales volume in 2021 were 26.082 million units and 26.275 million units, respectively, ending the three-year decline from 2018, with an interannual increase of 3.4 and 3.8% in that same order.
In particular, the new energy vehicle market showed explosive growth.
In 2021, the annual production and sales volume of new energy vehicles were 3.545 million units and 3.521 million units, respectively, with a year-on-year increase of about 1.6 times.
The annual penetration rate increased significantly by 8% to 13.4%, and the penetration rate in December reached 19.1 percent.
Thus, according to BYD Company, China’s new energy auto industry has developed from policy-driven to the new market-driven stage, showing a good development trend of both market scale and quality.
In addition, the Chinese company added, China’s new energy vehicle industry developed rapidly and gradually became an important driver and innovation milestone in the progress of the global auto industry’s electrification.
Auto industry
With a strong rise of own brands, the product offering has become rich and diverse, thus promoting market share increased significantly.
Likewise, BYD highlighted that the supply chain and industrial chain were also further improved, which has become an advantage for the entire industry and thus reshaped the structure of the auto industry.
In the same period, the European market for new energy vehicles experienced strong growth, while the United States, one of the main markets for new energy vehicles, also showed strong development potential.
In 2021, the COVID-19 pandemic continuously repeated itself globally. The international environment became more complex and severe, and the global economy struggled to recover under risks and challenges.
Among them, China’s standardized pandemic prevention and control took a leading position in the world, and its economic development has shown greater resilience and vitality.
However, affected by the recurrence of Covid-19, the increase in the prices of raw materials and other aspects, the downward pressure on the Chinese macroeconomy had increased since the second quarter of 2021.
