In the first half of 2022, China has already exceeded one million units of cars exported, with growth of more than 40% on an annual basis. Big growth for electric cars
In the first half of 2022 (not yet finished), the volume of vehicle exports to China has already exceeded one million units, growing more than 40% year-on-year according to data from the Chinese General Administration of Customs. From January to May, the export volume was 1.08 million units, an increase of 43% year on year. In May alone, 230,000 Chinese-made vehicles were exported, a 35% increase over the previous year. Specifically, according to the Chinese Automobile Manufacturers Association (CAAM), China exported 43,000 new-energy vehicles in May (Nev: they fall into this category, electric, hybrid and hydrogen), an increase of 130.5 % compared to the previous year. From January to May, China exported a total of 174,000 Neves, an increase of 141.5% over the previous year. Compared to the 12% drop in Chinese domestic vehicle sales from January to May this year, such an export performance is astonishing.
China is growing
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In 2021, China’s auto exports increased 100% from the previous year to a record 2.015 million units, making China the third largest vehicle exporter in the world last year. Also according to CAAM, passenger vehicles, commercial vehicles and Neves accounted for 1.614 million, 402,000 and 310,000 units, respectively. In 2021 Japan ranked first, exporting 3.82 million vehicles, followed by Germany with 2.3 million vehicles. 2021 was also the first year that China’s auto exports exceeded 2 million units. In previous years, China’s annual export volume was around 1 million units.
The shortage of chips
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According to AutoForecast Solutions (Afs), an automotive forecasting company, the global auto market this year experienced a production decrease of approximately 1.98 million vehicles due to chip shortages on May 29. Afs has predicted that the cumulative reduction in the global auto market will rise to 2.79 million units this year. Notably, vehicle production in China dropped 107,000 units this year due to chip shortages. The Neves are the main growth point for Chinese auto export. In 2021, the export of Chinese vehicles to Europe was the fastest, with a growth rate of 204%, while the growth rate of exports to North America was around 100%. From January to April 2022, the top ten countries to which China exported vehicles were: United States, Mexico, Japan, Belgium, Russia, South Korea, Germany, United Kingdom, Australia and Saudi Arabia (data provided by General Administration of Chinese Customs). According to previous estimates, the annual volume of vehicle exports to China in 2022 will be close to 3 million. As China’s auto export volume continues to grow alongside vehicle electrification in other parts of the world, it remains to be seen how China will seize this opportunity to surpass its export lead.
tesla to stop production in china
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If exports are therefore traveling at a rapid pace, the same cannot be said for the production in the Testa factory in Shanghai. In fact, according to the Reuters Tesla plans to suspend most of the production at its Chinese megacity plant in the first two weeks of July to work on a site update. After the modernization, the US carmaker intends to increase production at the plant with a goal of approaching 22,000 cars per week in Shanghai. The two-month Covid lockdown in Shanghai caused Tesla’s original plan to be delayed, which expected to produce 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai plant by mid-May. The Shanghai plant churned out 17,000 Model 3s and Model Ys per week starting in mid-June. “Our constraints are much more related to raw materials and the ability to scale production,” Tesla CEO Elon Musk said at the Qatar Economic Forum organized by Bloomberg on Tuesday. “We are increasing production capacity as fast as possible,” he added. According to the calculations of the Reuters Using data from the China Passenger Car Association, Tesla’s Chinese-made cars, sold locally and in markets such as Europe and Australia, accounted for about half of the 936,000 vehicles delivered globally last year.
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