As China solidifies its dominance by producing over 30 million vehicles in 2023, its automotive industry isn't just racing ahead—it's fundamentally rewriting the rules of the global market.
Key Takeaways
- In 2023, China produced 30.16 million motor vehicles, marking a 11.6% year-on-year increase and solidifying its position as the global leader in automotive production.
- China's passenger car production reached 25.38 million units in 2023, up 19.3% from 2022, driven by strong domestic demand.
- Commercial vehicle production in China hit 4.78 million units in 2023, reflecting a modest 1.2% growth amid logistics recovery.
- China's retail sales of passenger vehicles reached 21.74 million units in 2023, up 14.1% YoY.
- NEV retail sales in China hit 9.50 million units in 2023, comprising 38.7% of total passenger vehicle sales.
- Traditional fuel passenger car sales were 12.24 million units in 2023, down 1.8% YoY.
- China's NEV exports surged 77% to 1.2 million units in 2023.
- BYD NEV production capacity exceeded 4 million units annually by end-2023.
- Battery production for EVs in China reached 1,200 GWh in 2023.
- China's vehicle exports grew 57.3% to 4.91 million units in 2023.
- Passenger vehicle exports from China reached 3.62 million units in 2023, up 75% YoY.
- Commercial vehicle exports hit 1.29 million units in 2023.
- In 2023, China invested RMB 1.2 trillion in automotive R&D.
- Number of auto enterprises in China was 1,200 by end-2023.
- Highway mileage suitable for autos reached 5.37 million km in 2023.
China remains the world's top auto producer and leader in new energy vehicle growth.
Electric Vehicles and NEVs
- China's NEV exports surged 77% to 1.2 million units in 2023.
- BYD NEV production capacity exceeded 4 million units annually by end-2023.
- Battery production for EVs in China reached 1,200 GWh in 2023.
- CATL supplied batteries for 37% of global EV sales in 2023.
- China's public EV charging stations numbered 2.73 million by end-2023.
- Private EV chargers installed reached 4.1 million in 2023.
- NEV subsidy policies ended in Dec 2022, yet sales grew 40% in 2023.
- China's share of global NEV production was 60% in 2023.
- Installed EV battery capacity in China hit 800 GWh in 2023.
- Number of NEV models available in China exceeded 200 in 2023.
- BEV market share in NEVs was 64% in H1 2024.
- PHEV sales growth was 81.6% YoY in 2023.
- China's hydrogen fuel cell vehicle production reached 5,000 units in 2023.
- Fast chargers (above 60kW) numbered 1.1 million in China by 2023.
- Average EV battery price in China dropped to $99/kWh in 2023.
- BYD's Blade battery production scaled to 30 GWh in 2023.
- NIO delivered 160,038 EVs in 2023.
- XPeng sales totaled 141,601 vehicles in 2023.
- Li Auto sold 376,030 NEVs in 2023.
- China's NEV ownership reached 20.41 million vehicles by end-2023.
- NEV penetration in new sales hit 45.9% in Dec 2023.
- Solid-state battery R&D investment in China was RMB 50 billion in 2023.
Electric Vehicles and NEVs Interpretation
China’s electric vehicle industry has meticulously built an entire ecosystem—from dirt-cheap batteries to a charging network larger than some countries’ road systems—and is now exporting it at a pace that leaves the global competition looking like they’re still trying to find the charging cable.
Exports and International Trade
- China's vehicle exports grew 57.3% to 4.91 million units in 2023.
- Passenger vehicle exports from China reached 3.62 million units in 2023, up 75% YoY.
- Commercial vehicle exports hit 1.29 million units in 2023.
- NEV exports from China surged to 1.2 million units in 2023, a 77% increase.
- China became the world's largest auto exporter in 2023, surpassing Japan.
- Exports to Russia grew 5x to 900,000 units in 2023.
- Shipments to Latin America reached 450,000 vehicles in 2023.
- Middle East exports from China totaled 380,000 units in 2023.
- ASEAN region received 520,000 Chinese vehicles in 2023.
- Europe imports of Chinese EVs reached 250,000 units in 2023.
- BYD exported 240,000 vehicles in 2023.
- Chery exports hit 937,000 units in 2023.
- Geely exported 452,000 vehicles in 2023.
- SAIC exports reached 320,000 units in 2023.
- Great Wall Motor overseas sales were 135,000 units in 2023.
- In H1 2024, exports were 2.55 million units, up 23.5% YoY.
- CKD exports (semi-knockdown kits) totaled 150,000 units in 2023.
- Overseas sales revenue from auto exports was USD 102 billion in 2023.
- Share of exports in total sales rose to 18.3% in 2023.
- Brazil imported 180,000 Chinese vehicles in 2023.
- South Africa received 85,000 units from China in 2023.
- Saudi Arabia imports grew to 120,000 vehicles in 2023.
Exports and International Trade Interpretation
While the West was debating electric range anxiety, China quietly shipped an entire automotive revolution overseas, delivering a record 4.9 million vehicles and the title of world's largest auto exporter by mastering everything from budget sedans for Russia to premium EVs for Europe.
Infrastructure Policies and Investments
- In 2023, China invested RMB 1.2 trillion in automotive R&D.
- Number of auto enterprises in China was 1,200 by end-2023.
- Highway mileage suitable for autos reached 5.37 million km in 2023.
- Auto industry FDI inflows were USD 15 billion in 2023.
- NEV purchase tax exemption extended to 2025, saving buyers RMB 520 billion cumulatively.
- "Double Credit" policy for NEVs allocated 18 million credits in 2023.
- Automotive VC investments totaled RMB 450 billion in 2023.
- State-owned auto assets valued at RMB 8.5 trillion in 2023.
- R&D expenditure as % of revenue was 6.2% for top 100 auto firms in 2023.
- Number of patent applications in auto sector hit 450,000 in 2023.
- 5G-enabled smart factories in auto industry numbered 150 in 2023.
- Digital R&D platforms for autos covered 80% of enterprises by 2023.
- Government subsidies for auto industry were RMB 120 billion in 2023.
- Intelligent connected vehicle pilot zones expanded to 12 cities in 2023.
- V2X infrastructure deployed on 5,000 km highways by 2023.
- Auto chip self-sufficiency rate reached 25% in 2023.
- Tesla Shanghai Gigafactory investment totaled USD 7.3 billion by 2023.
- BMW added RMB 20 billion investment in Shenyang plant in 2023.
- Volkswagen's EV hub in Hefei cost RMB 30 billion in 2023.
- Annual auto logistics volume was 45 billion ton-km in 2023.
Infrastructure Policies and Investments Interpretation
While these figures reveal China's deep pockets and long roads, it’s the sheer density of capital, policy, and infrastructure deliberately poured into every gear of the machine that shows this isn't just an industry growing, but an ecosystem being forcibly and strategically evolved at a staggering scale.
Production Statistics
- In 2023, China produced 30.16 million motor vehicles, marking a 11.6% year-on-year increase and solidifying its position as the global leader in automotive production.
- China's passenger car production reached 25.38 million units in 2023, up 19.3% from 2022, driven by strong domestic demand.
- Commercial vehicle production in China hit 4.78 million units in 2023, reflecting a modest 1.2% growth amid logistics recovery.
- In 2022, China's new energy vehicle (NEV) production surged to 7.71 million units, accounting for 25.6% of total vehicle output.
- Guangdong province led with 3.45 million vehicles produced in 2023, representing 11.4% of national output.
- Shanghai's automotive production totaled 3.12 million units in 2023, boosted by Tesla's Gigafactory.
- Jilin province produced 2.89 million vehicles in 2023, with FAW Group contributing significantly.
- China's bus production reached 552,000 units in 2023, up 12.5% year-on-year.
- Truck manufacturing output in China was 4.23 million units in 2023, supported by infrastructure projects.
- In H1 2024, total vehicle production was 15.45 million units, a 3.5% increase from H1 2023.
- Passenger vehicle production in Q1 2024 hit 7.72 million units, up 19.7% YoY.
- NEV production in 2023 reached 9.50 million units, a 37% increase.
- China's auto production capacity utilization rate was 75.2% in 2023.
- SUV production in China totaled 10.12 million units in 2023.
- MPV production reached 1.01 million units in 2023.
- In 2023, China's engine production for vehicles was 78.6 million units.
- Gearbox production hit 45.2 million units in 2023.
- Stamping parts production for autos was 120 million tons equivalent in 2023.
- China's auto chassis production reached 32.5 million sets in 2023.
- In 2023, FAW Group produced 3.8 million vehicles.
- SAIC Motor's production was 5.02 million units in 2023.
- Dongfeng Motor produced 2.45 million vehicles in 2023.
- Changan Automobile output was 2.31 million units in 2023.
- Geely Holding Group produced 2.18 million vehicles in 2023.
- In Q2 2024, vehicle production was 8.05 million units, up 2.4% YoY.
- China's 2023 auto production included 1.2 million heavy trucks.
- Light truck production was 3.1 million units in 2023.
- In 2023, China produced 450,000 large passenger buses.
Production Statistics Interpretation
While China's automakers aren't exactly sitting in idle—having pumped out a staggering 30 million vehicles in 2023 with NEV numbers shifting into hyperdrive—their overall capacity utilization of just 75.2% suggests the industry's foot might still be a bit heavy on the production pedal relative to actual market demand.
Sales and Domestic Market
- China's retail sales of passenger vehicles reached 21.74 million units in 2023, up 14.1% YoY.
- NEV retail sales in China hit 9.50 million units in 2023, comprising 38.7% of total passenger vehicle sales.
- Traditional fuel passenger car sales were 12.24 million units in 2023, down 1.8% YoY.
- SUV sales in China totaled 11.23 million units in 2023, accounting for 51.7% of passenger cars.
- Sedan sales reached 8.76 million units in 2023.
- MPV sales in China were 1.45 million units in 2023, up 15.2%.
- Commercial vehicle sales hit 4.45 million units in 2023, up 6.2% YoY.
- Truck sales in China were 3.98 million units in 2023.
- Bus sales totaled 470,000 units in 2023.
- In July 2024, passenger vehicle retail sales were 1.78 million units, down 4.5% MoM.
- BYD sold 3.02 million NEVs in 2023, leading the domestic market.
- Geely Auto sales reached 1.69 million units in 2023.
- Chery Automobile sold 1.87 million vehicles in 2023.
- Changan Auto retail sales were 1.95 million units in 2023.
- Great Wall Motor sold 1.23 million vehicles in 2023.
- Average passenger car selling price in China was RMB 150,000 in 2023.
- Wholesale sales of passenger vehicles in 2023 were 23.4 million units.
- In H1 2024, NEV penetration rate in retail sales was 42.3%.
- Export-included wholesale sales for passenger cars were 26.11 million units in 2023.
- Luxury car sales in China grew 12% to 1.2 million units in 2023.
- Online auto sales platforms handled 15% of total transactions in 2023.
- Second-hand car sales reached 18.5 million units in 2023.
- Fleet sales to enterprises accounted for 28% of total in 2023.
- Retail penetration of NEVs in Tier 1 cities was 55% in 2023.
- Monthly passenger car sales in December 2023 peaked at 2.65 million units.
- China's NEV sales share rose from 25.6% in 2022 to 38.7% in 2023.
- In 2023, BEV sales were 6.72 million units, 70.7% of NEVs.
- PHEV sales reached 2.78 million units in 2023.
Sales and Domestic Market Interpretation
China's auto industry is executing a remarkably orderly coup, where electric vehicles are swiftly overtaking the throne while SUVs comfortably rule the road and the traditional engine quietly begins its dignified retreat.
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