CAA: Oct. auto production and sales narrowed year-on-year decline

19 November 2021 | Source from China Rubber Web

According to the data released by the China Automobile Association on November 10, 2021 October, China's macroeconomic operation is generally stable, but the domestic and international environment is still complex and severe. The auto industry has made efforts to overcome the impact of many unfavorable factors such as tight electricity supply, high prices of raw materials, as well as the supply situation of vehicle-grade chips slightly better than in the third quarter, auto production and sales continue to show recovery, and the overall situation shows signs of improvement.

In October, China's auto production and sales were completed 2.33 million and 2.333 million units, up 12.2% and 12.8%, respectively, compared with the same period in 2019, down 8.8% and 9.4%, the decline narrowed by 9.1 and 10.2 percentage points respectively. Compared with the same period in 2019, production and sales increased by 1.4% and 1.5% year-on-year, while August and September were below the 2019 level for two consecutive months, indicating that the tight supply situation that emerged in the third quarter has eased. Considering the high average monthly sales in November-December of the previous year (2.8 million units), the chip shortage remains in the short term, so the latter two months are under pressure.

From the situation of the month, October auto production and sales in passenger cars, driven by the decline narrowed significantly. October chip supply, although slightly eased than in September, but still can not fully meet the production needs, and commercial vehicles by the policy and regulation switch led to continued market volatility, coupled with the lack of demand is expected to continue to show a significant decline year-on-year, so the auto market is still running at a low level. Although the automobile production and sales situation is under pressure, but the industry is still not lack of bright spots. New energy vehicle production and sales have reached record highs, with monthly production and sales approaching 400,000 units, and the penetration rate continued to rise to 12.1% from January to October. At the same time, driven by the recovery of overseas markets and the growth of new energy vehicle exports, this month's vehicle exports also set a new record.

From January to October, China's auto production and sales completed 20.587 million units and 20.970 million units respectively, an increase of 5.4% and 6.4% year-on-year, and the growth rate continued to drop by 2.1 and 2.3 percentage points compared with January-September. Compared with the same period in 2019, production and sales increased by 0.6% and 1.4% year-on-year, respectively, with an increase of 0.2 and 0.1 percentage points compared with January-September.

In the fourth quarter, with the steady and positive development of the macro economy, the consumer demand for automobiles remained stable. However, there is still uncertainty on the supply side. The gradual easing of chip supply in the fourth quarter will push the monthly production and sales to maintain growth, but the overall supply situation still exceeds demand; the orderly use of electricity around the country and the domestic scattered epidemic have increased the potential risk of supply disruption in the auto industry; the rising electricity costs and the continued high prices of raw materials have increased the cost pressure on enterprises. The comprehensive view of the above factors, the annual automobile production and sales will be slightly higher than last year, but lower than expected.

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