China’s New Energy Vehicle Sales Reach 1.9403 Million Units in October
Key Facts
China’s new energy vehicle sales reached 1.9403 million units in October, up 13.1% year on year, according to a report published by Shanghai Metals Market, citing data from the China Association of Automobile Manufacturers. The sector grew in a month when total vehicle sales fell to 3.016 million units, down 9.2% from October last year. Vehicle production, meanwhile, stood at 3.063 million units, down 8.8% year on year. The figures put new energy vehicle performance in the context of a broader market that contracted year on year. They also reflect a divergence between cumulative growth in sales of this vehicle type and weakness in total sales in October.
From January to October, new energy vehicle sales reached 14.411 million units, up 11.3% from the same period a year earlier. These vehicles accounted for 54.8% of total new vehicle sales in the first ten months. This points to their growing weight in the Chinese market, even as overall sales fell in October. This share alone does not mean new vehicle growth offset weak domestic demand for vehicles overall. Interpreting market activity also depends on distinguishing vehicle sales covered by the association’s data from domestic retail sales tracked by other data.
Separate passenger-car sales data showed exports rose 68.2% year on year in October to 932,000 cars, according to data from the China Passenger Car Association cited by Reuters. But domestic passenger-car sales fell 27.3% to 1.65 million cars. The domestic decline was less severe than September’s 28.1% drop, but October marked the 12th consecutive month of year-on-year declines in domestic sales. These figures cover passenger cars and should not be conflated with total vehicle sales or new energy vehicle sales in data from the China Association of Automobile Manufacturers. Nor do these totals alone prove that exports offset weak domestic sales.
In September sector data, new energy vehicle sales reached 1.823 million units, up 13.6% year on year, and accounted for 61.6% of total new vehicle sales, according to China’s Ministry of Industry and Information Technology. This reading provides a basis for comparison with the cumulative 54.8% share recorded in the first ten months, as the percentages cover different periods. The ministry also said car exports in September reached 1.053 million units, including 571,000 new energy vehicles. New energy vehicle exports then rose 157.2% year on year. These are September figures and do not describe the split between domestic and export sales in October.
In China’s economy, the consumer price index rose 0.7% in October from a year earlier, according to Xinhua, citing the State Council Information Office. In the first ten months of the year, consumer prices rose 0.9% year on year. In trade, Chinese exports jumped 35.2% in October and imports rose 41.6%, according to the Associated Press. The trade surplus nevertheless narrowed to $105.3 billion from $133.5 billion in September. These indicators place the auto sector’s performance within a broader economic picture of strong foreign trade growth, alongside a slower pace of price increases and a lower trade surplus than the previous month.
China will release its October reports on industrial production and total retail sales of consumer goods on November 16 at 10:00 local time, according to the National Bureau of Statistics’ calendar. The first report will provide a reading on industrial activity, while the second tracks consumer spending during the same month. The release follows vehicle data showing a year-on-year decline in total sales alongside growth in new energy vehicle sales. The two reports will also provide additional context for assessing domestic demand and economic activity in October. They are monthly data for October, not annual readings.