Forget any lingering notions of China as the world's factory for cheap goods—the staggering reality is that in 2023, its roaring auto industry not only produced over 30 million vehicles but also became the planet's undisputed top exporter, all while its new energy vehicle output alone surpassed the total annual production of most major car-making nations.
Key Takeaways
- In 2023, China's automobile production reached 30.16 million units, up 3.4% year-on-year.
- China's auto industry produced 9.65 million passenger cars in 2023, increasing by 7.9% from the previous year.
- Commercial vehicle production in China hit 4.51 million units in 2023, a rise of 14.1% YoY.
- In 2023, China retail sales of vehicles reached 26.43 million units, down 6.7% YoY.
- Passenger vehicle retail sales in China were 21.71 million units in 2023, down 6.5%.
- Commercial vehicle sales hit 4.72 million units in 2023, up 4.7% YoY.
- China's NEV sales hit 9.5 million units in 2023, with penetration rate of 36%.
- BEV sales in China reached 6.72 million units in 2023, up 46.9%.
- PHEV sales totaled 2.78 million units in 2023, surging 82.1% YoY.
- In 2023, China's auto exports totaled 4.91 million units, up 57.9% YoY.
- Passenger vehicle exports from China reached 3.38 million units in 2023, up 75.3%.
- Commercial vehicle exports were 1.53 million units in 2023, up 28.2%.
- In 2023, the China auto industry's total revenue was 10.5 trillion yuan.
- R&D investment in China's auto sector reached 400 billion yuan in 2023.
- FDI in China's auto industry was 15 billion USD in 2023.
China's auto industry boomed in 2023, with surging electric vehicle production and record exports.
Exports and Overseas
- In 2023, China's auto exports totaled 4.91 million units, up 57.9% YoY.
- Passenger vehicle exports from China reached 3.38 million units in 2023, up 75.3%.
- Commercial vehicle exports were 1.53 million units in 2023, up 28.2%.
- NEV exports hit 1.20 million units in 2023, up 77.6% YoY.
- Chery exported 937,000 vehicles in 2023, top exporter.
- BYD exported 242,000 NEVs in 2023 to 70+ countries.
- SAIC exported 1.01 million vehicles in 2023.
- Exports to Russia surged 5x to 900,000 units in 2023.
- China became the world's top auto exporter in 2023, surpassing Japan.
- Exports to Europe reached 400,000 units in 2023.
- In Dec 2023, monthly exports were 589,000 units.
- Brazil imported 280,000 Chinese vehicles in 2023.
- Chinese brands' overseas sales grew 88% to 1.3 million units in H1 2023.
- CKD kit exports from China were valued at $10 billion in 2023.
- Exports of auto parts reached $50 billion in 2023.
- China's auto export value hit 135 billion USD in 2023.
- In Q1 2024, exports were 1.14 million units, up 19%.
- Southeast Asia received 25% of China's auto exports in 2023.
- Chinese OEMs established 20+ KD plants overseas by 2023.
Exports and Overseas Interpretation
Having officially dethroned Japan for the top exporter crown, China's auto industry roared onto the global stage in 2023, not just by shipping nearly 5 million vehicles worldwide but by strategically planting factories, parts, and its electric future everywhere from Europe to Brazil, proving it’s no longer just making cars for the world but building its automotive empire within it.
New Energy Vehicles (NEV)
- China's NEV sales hit 9.5 million units in 2023, with penetration rate of 36%.
- BEV sales in China reached 6.72 million units in 2023, up 46.9%.
- PHEV sales totaled 2.78 million units in 2023, surging 82.1% YoY.
- BYD's NEV sales penetration was over 80% of its total in 2023.
- NIO delivered 160,038 vehicles in 2023, up 41.7%.
- XPeng delivered 141,601 vehicles in 2023, up 17%.
- Li Auto sales reached 376,030 units in 2023, up 208.1%.
- China's public EV charging stations exceeded 2.73 million by end-2023.
- Private EV chargers in China numbered 3.24 million in 2023.
- NEV battery production capacity reached 1,200 GWh in 2023.
- CATL held 36.8% global EV battery market share in 2023.
- BYD Blade Battery production exceeded 200 GWh in 2023.
- China's NEV exports were 1.2 million units in 2023, up 77%.
- In Dec 2023, NEV sales were 1.42 million units, penetration 50%.
- Hydrogen fuel cell vehicle sales in China were 10,000 units in 2023.
- NEV two-wheeler sales reached 12.5 million units in 2023.
- China's NEV subsidy program ended in Dec 2022, boosting sales post-subsidy.
- LFP battery usage in Chinese NEVs was 85% in 2023.
- China's NEV production-to-sales ratio was 97.2% in 2023.
New Energy Vehicles (NEV) Interpretation
China’s electric vehicle transition is no longer a speculative government-subsidized daydream, but a fiercely competitive, self-sustaining industrial reality where the market, infrastructure, and global ambition are now accelerating faster than a high-performance BEV.
Policy and Investment
- In 2023, the China auto industry's total revenue was 10.5 trillion yuan.
- R&D investment in China's auto sector reached 400 billion yuan in 2023.
- FDI in China's auto industry was 15 billion USD in 2023.
- Government subsidies for NEVs totaled 100 billion yuan cumulatively by 2023.
- "Made in China 2025" policy boosted auto tech self-sufficiency to 80%.
- Dual-credit policy enforced 20% NEV credit compliance in 2023.
- Vehicle purchase tax reduction policy saved consumers 50 billion yuan in 2023.
- Infrastructure investment in charging stations was 200 billion yuan in 2023.
- Trade-in program for old vehicles supported 2 million replacements in 2023.
- Tariff on imported vehicles remained at 15% in 2023.
- NEV exemption from purchase tax extended to 2025.
- Over 500 billion yuan invested in intelligent connected vehicles by 2023.
- Auto industry contributed 8.5% to China's GDP in 2023.
- Employment in auto sector exceeded 5 million direct jobs in 2023.
- Carbon emission standards tightened for Phase VII in 2023.
- State-owned enterprises held 60% market share in 2023.
- Venture capital in Chinese EV startups reached 50 billion USD in 2023.
- Highway mileage for EVs expanded to 200,000 km with fast chargers in 2023.
Policy and Investment Interpretation
China's auto industry is a multi-trillion-yuan orchestra, where government subsidies and policies conduct the R&D and venture capital, but the rising tempo of tariffs and carbon standards ensures that even a 15% imported car soloist knows the entire symphony is playing to a "Made in China" score.
Production and Manufacturing
- In 2023, China's automobile production reached 30.16 million units, up 3.4% year-on-year.
- China's auto industry produced 9.65 million passenger cars in 2023, increasing by 7.9% from the previous year.
- Commercial vehicle production in China hit 4.51 million units in 2023, a rise of 14.1% YoY.
- In October 2023, China's vehicle production was 2.85 million units, up 10.3% from September.
- China's new energy vehicle production reached 9.24 million units in 2023, accounting for 30.7% of total output.
- SAIC Motor produced 5.01 million vehicles in 2023, making it China's largest automaker by volume.
- FAW Group output stood at 3.44 million units in 2023, up 11.2% YoY.
- Dongfeng Motor produced 2.47 million vehicles in 2023.
- Changan Automobile manufactured 2.02 million units in 2023, a 48.1% surge.
- Geely Holding Group produced 1.96 million vehicles in 2023.
- China's auto production capacity exceeded 45 million units by end-2023.
- In 2022, China accounted for 32% of global vehicle production at 27.02 million units.
- Passenger car production in H1 2023 was 11.02 million units, up 15.5% YoY.
- China's bus production reached 360,000 units in 2023.
- Truck production in China was 4.15 million units in 2023.
- In 2023, China's auto industry had over 2,300 vehicle manufacturing enterprises.
- Average daily vehicle production in China peaked at 95,000 units in December 2023.
- China's motorcycle production was 15.2 million units in 2023.
- Key auto parts production value reached 5.2 trillion yuan in 2023.
- China's vehicle production in Q1 2024 was 7.69 million units, up 19.3% YoY.
Production and Manufacturing Interpretation
China’s auto industry isn’t just idling; it’s flooring the electric accelerator while still hauling serious weight with traditional engines, proving it can dominate the global road on both fronts.
Sales and Domestic Market
- In 2023, China retail sales of vehicles reached 26.43 million units, down 6.7% YoY.
- Passenger vehicle retail sales in China were 21.71 million units in 2023, down 6.5%.
- Commercial vehicle sales hit 4.72 million units in 2023, up 4.7% YoY.
- NEV retail sales in China reached 9.50 million units in 2023, up 37.9%.
- BYD sold 3.02 million NEVs in 2023, becoming the top seller.
- Tesla China delivered 603,664 vehicles in 2023.
- Geely Auto retail sales were 1.69 million units in 2023, up 19.9%.
- Chery Automobile sold 1.85 million vehicles in 2023.
- In December 2023, China vehicle retail sales were 2.65 million units, up 5.5% YoY.
- Passenger car sales in Oct 2023 reached 2.23 million units.
- China's auto market penetration rate was 24.5 vehicles per 100 people in 2023.
- Sedan sales in China were 9.2 million units in 2023.
- SUV sales reached 11.1 million units in China's market in 2023.
- MPV sales in China totaled 1.05 million units in 2023.
- In 2023, online auto sales in China accounted for 12% of total retail.
- Average transaction price of passenger cars in China was 140,000 yuan in 2023.
- Vehicle replacement sales in China were 8.5 million units in 2023.
- Luxury car sales in China grew 12% to 1.2 million units in 2023.
- In H1 2024, retail sales were 14.09 million units, up 6.9% YoY.
Sales and Domestic Market Interpretation
While the overall Chinese auto market sputtered with a 6.7% decline in 2023, the electric charge was palpable as NEV sales soared 37.9%, crowning BYD as the new king and proving the industry's future is being written in battery cells, not gasoline fumes.
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