China’s electric vehicle market is expected to slow down this year for the second time in 2023. Economic recovery from the new coronavirus pandemic (global pandemic) has been delayed, and consumer sentiment has worsened.
According to the Japan Passenger Car Market Information Association, shipments of battery electric vehicles (EVs) and plug-in hybrid vehicles to dealers are expected to increase by 25% to 11 million units in 2024. Although it is still expanding, the pace is slowing down from the 36% increase in 2023 and the 96% increase in 2022.
China’s EV Sales Notch Another Record
While deliveries remain strong, rapid pace of growth is slowing
Source: China Passenger Car Association
According to the Japan Railway Association, retail sales of electrified vehicles in 2023 were 7.74 million units. The penetration rate was 35.7%, an increase of 8 points from the previous year.
The predicted slowdown in market growth means it will be more difficult for manufacturers to meet their sales targets, and the price wars that gripped the industry last year and depressed profit margins may still persist.
Last year’s sales increase “came amid fierce competition and came at a heavy cost to automakers’ profitability. This pressure remains strong in comparison,” Choi Dong-soo, secretary general of the Japan Automobile Association, said at a press conference on the 9th. It’s very strong.”
Car exports soared 62% last year as Chinese manufacturers seek growth overseas. In October 2023, the European Union (EU) launched an investigation into China’s EV subsidies, alleging that they were distorting the market.
According to the Japan Railway Association, the number of retail passenger car sales in December last year was 2.35 million units, an increase of 8.5% from the same month last year. In 2023, sales totaled 21.7 million units, an increase of 5.6% from the previous year.
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Original title:China’s EV-Market Boom Is Set to Slow for a Second Year (1) (excerpt)
2024-01-09 12:12:31
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