China's New Energy Vehicle Sales are Expected To Exceed 8.5 Million in 2023

Benefiting from the high visibility of the industry, many new energy vehicle companies have achieved a pre-increase in performance in 2022.

China Passenger Car Market Information Association(CPCA) predicts that on the basis of the annual sales of 6.5 million new energy passenger vehicles in 2022, it may exceed 8.5 million in 2023. However, industry insiders said that under the background of the subsidization and recession policy, the market pattern of new energy vehicles is being reshaped and the competition among enterprises will be more intense.

In January 2023, China's new energy vehicle domestic retail market penetration reached 25.7%

According to the data released by CPCA recently, the wholesale sales of new energy passenger vehicles in China reached 389,000 in January, with a year-on-year decrease of 7.3% and a month-on-month decrease of 48.2% ; the retail sales of new energy passenger vehicles reached 332,000, with a year-on-year decrease of 6.3% year-on-year and a month-on-month decrease of 48.3%.

At the same time, China's new energy vehicle penetration rate was still rising. Specifically, the wholesale penetration rate of new energy vehicle manufacturers in January was 26.8%, 7.4 percentage points higher than the 19.4% penetration rate in January 2022. The domestic retail penetration rate of new energy vehicles was 25.7%, 8.7 percentage points higher than the 17% penetration rate in January 2021.

China's new energy vehicle sales are expected to exceed 8.5 million in 2023

With the continuous growth of the sales of new energy vehicles for more than two consecutive years, the rising price of lithium carbonate and other resources has brought profit space, attracting many listed companies to participate in the layout. However, since the new year, the price of lithium battery materials such as lithium carbonate in the upstream has been dropping. The industry expects that with the continuous release of the capacity of the midstream power battery, the market phenomenon of supply and demand mismatch in the early stage has been alleviated, which will be conducive to the improvement of the profitability of the new energy vehicle enterprises.

With the decline of new energy subsidies, the competition in the new energy vehicle market will become more intense in 2023. At present, Tesla and other enterprises have announced price reductions, and it is expected that brands with the same price range will follow the price reductions to maintain their market share. In the future, auto enterprises with high cost performance, complete supply chain and strong cost control ability will be more competitive in the market.

CPCA estimates that on the basis of the annual sales of 6.5 million new energy passenger vehicles in 2022, it may exceed 8.5 million in 2023. By the end of 2023, the number of new energy vehicles will exceed 20 million, accounting for 7% of the total number of vehicles. Cui Dongshu analyzed and believed that the demonstration effect brought by the purchase and travel restriction factors in large cities promoted the upsurge of small and medium-sized cities to purchase new energy vehicles, so the sales of new energy vehicles driven by the comprehensive cost difference increased sharply, and the process of replacing fuel vehicles with new energy vehicles was accelerating.

(From :news.zgjrw.com)

Translated by; WONDEE Autoparts

2023/2/22