China produced 24.8 million light vehicles from January to October 2021, reaching a share of 31.2% in the total of these units manufactured worldwide.
Before, it produced 24.6 million units in the same period of 2019 (a share of 27.6%) and 23.1 million in the same period of 2020 (a share of 31.3 percent).
Worldwide, in the first 10 months of 2021, the production of light vehicles in the world totaled 79.5 million units, an increase of 7.6% at the annual rate, according to IHS data.
Light Vehicle Production
For the Chinese auto parts company XD Plastics Company Limited, the Covid-19 outbreak in early 2020 created a future disruption in the market and has affected the normal business operation of automakers.
For now, China’s light vehicle production fell 6.1% in 2020, after a rapid development of several years and a compound annual growth rate of automotive production is forecast of around 2.2% during the period from 2019 to 2023. .
China XD Plastics Company Limited said that the production volume of passenger cars and commercial cars is expected to grow at a CAGR of 2.1 and 2.2%, respectively, during the period from 2019 to 2023.
China has overtaken the United States to become the world’s largest auto market as measured by the number of cars sold.
Furthermore, China XD Plastics Company Limited believes that the growth momentum of automobile sales in China will remain strong for the next four years.
The auto industry in China is still in its infancy with passenger car ownership of 166 vehicles per 1,000 residents in 2018, which is significantly below the European average of 526 and the United States average of 781.
According to the statistics of the China Association of Automobile Manufacturers (CAAM) in 2018, the volume of automobile production in China increased from 22 million 116,800 units in 2013 to 27 million 809,200 units in 2018.
The decline in automotive production is observed in 2018 and 2019 due to weakened market demand, as well as reduced incentives granted by the Chinese government to car manufacturers, especially electric vehicle manufacturers.