SOURCE / ECONOMY
Auto sector off to good start in Q1 as sales, output each exceed 6.6m units
Published: Apr 10, 2024 03:33 PM
Workers complete assembling an electric vehicle (EV) at China's EV start-up Leapmotor in Jinhua, East China's Zhejiang Province on April 1, 2024. The smart EV factory delivered 14,567 new vehicles in March, a yearly increase of 136 percent. Photo: VCG

Workers complete assembling an electric vehicle (EV) at China's EV start-up Leapmotor in Jinhua, East China's Zhejiang Province on April 1, 2024. Photo: VCG


China's vehicle market got off to a good start in the first quarter, with production and sales each exceeding 6.6 million units, data from the China Association of Automobile Manufacturers (CAAM) showed on Wednesday.

Production rose 6.4 percent year-on-year to 6.6 million vehicles, while sales were up by 10.6 percent to 6.72 million, according to the CAAM.

"Production and sales recorded a rapid growth in the first quarter, with passenger vehicles and commercial vehicles both posting sound performances. The market share of new-energy vehicles (NEVs) remained above 30 percent and exports stayed at a high level, playing an active role in driving industry growth," Chen Shihua, a deputy secretary general of the CAAM, told the Global Times.

Exports jumped 33.2 percent on a yearly basis to 1.32 million units, the data showed.

As a pillar industry of the national economy, the auto sector plays an important role in stabilizing economic growth and employment. Thus, it's important to strengthen the industry's growth momentum, according to the association.

Efforts shouldn't focus only on sales and production growth but also on higher quality, Chen said. 

"China has taken the lead in intelligent connected vehicles in the NEV sector, and we should unswervingly consolidate and expand the advantage," he said.

Chen called for detailed policies to support trade-ins, which would help release consumption potential and contribute to the industry's high-quality development.

Surging exports and burgeoning domestic market demand are being buoyed by the government's push for low-carbon green development, backed up by an increasingly modern industrial system and mature industrial chain. 

However, both the US and the EU have taken protectionist actions against Chinese car imports in a bid to contain China's tech innovation and long-term economic development.

Minister of Commerce Wang Wentao stressed in Paris, France on Sunday that Chinese electric vehicle manufacturers' rapid development is a result of constant tech innovation, well-established supply chains and full market competition, not subsidies.

Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times that the potential of the nation's vehicle market will be further unleashed in April with the roll-out of many new models from domestic automakers.

After a hiatus of four years, the Beijing International Automobile Exhibition will be held starting from April 25. As an important venue for cutting-edge technologies and new products, the show will attract widespread attention. 

The event, along with policies to boost consumption, will become a catalyst for domestic car spending, Cui said. He forecast that China's auto market will see a surge in the upcoming months.