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China’s Auto Market Booms with NEV Sales Hitting New Highs in 2023
January 12, 2024
01

China’s Auto Market Booms with NEV Sales Hitting New Highs in 2023

In 2023, China’s passenger car production and sales volumes reached 26.12 million and 26.06 million units, respectively, marking a year-over-year increase of 9.6% and 10.6%. Commercial vehicle production and sales volumes reached 4.037 million and 4.03 million units, respectively, with year-over-year growth of 26.8% and 22.1%.

Data from the China Association of Automobile Manufacturers (CAAM) shows that in 2023, China’s production and sales of new energy vehicles (NEVs) reached 9.59 million and 9.5 million units, respectively, with year-over-year increases of 35.8% and 37.9%, and a market share of 31.6%. Among the main types of NEVs, compared to the previous year, all three major categories showed significant growth in production and sales.

Chen Shihua, Deputy Secretary-General of CAAM, stated that the continuous recovery and improvement of the macroeconomy are conducive to the stable growth of the automotive industry. With the ongoing implementation of national policies to promote consumption and stabilize growth, along with the execution of a series of high-quality development policies for the NEV industry, the market vitality and consumer potential will be further unleashed. The Chinese automotive market is expected to maintain a stable and positive development trend in 2024.

02

The Price of National Liquor is Halved, a New Wave of Anti-corruption in China

On January 7th, Kweichow Moutai released the Dragon Maotai Zodiac Liquor with a sale price of 2,499 yuan per bottle. Over 8.5 million people participated in the subscription process, with a success rate of 0.2%. The extremely hot sale briefly pushed its market price to nearly 8,000 yuan per bottle. In China, Moutai (also called Maotai) is known as ‘the national liquor’. Therefore, it is also a highly popular gift.

However, on January 12th, on third-party platforms, the market price of Dragon Maotai reached 4,349 yuan per bottle. On the resale platform, sellers listed prices mostly ranging from 3,800 yuan to 4,000 yuan per bottle, nearly halving the price in just 5 days since the official sale. This may be related to the 20th Central Commission for Discipline Inspection’s third plenary session held from January 8th to 10th, which mentioned a focus on cracking down on officials’ violations of regulations regarding dining and drinking.

03

China Leads Global Renewable Surge to 2028

The International Energy Agency (IEA) released a report on the 11th stating that the global renewable energy capacity reached 510 gigawatts in 2023, a 50% increase from the previous year, and is expected to continue to flourish over the next five years. Among them, solar photovoltaic (PV) power generation accounts for three-quarters of the newly added renewable energy worldwide.

The IEA also indicated that the largest growth occurred in China, where the added capacity of solar PV in 2023 exceeded the total new solar PV capacity added worldwide in 2022. In 2023, China’s new wind power capacity also surged by 66% year-on-year.

In addition, the report by the IEA states that the growth of renewable energy capacity in Europe, the United States, and Brazil also reached historic highs. IEA Executive Director Fatih Birol said that the report shows, “Under current policies and market conditions, the global renewable energy capacity is expected to increase by 2.5 times by 2030.” Renewable energy is expected to account for 42% of global electricity generation by 2028.

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