In the first quarter, the production and sales of automobiles showed a remarkable increase in structural growth
On April 9th, the China Automobile Association held a press conference to share updates on auto production and sales, highlighting that the automotive market is showing signs of recovery, driven by the ongoing effects of the country’s economic stimulus policies. In March, both car production and sales surpassed the one million mark, setting new monthly records. Every model experienced sequential growth, signaling a positive shift in consumer demand.
According to the SAIC Automobile Production and Sales Statistics, March saw car production reach 1,095,400 units and sales hit 1,109,800 units, representing year-on-year increases of 5.55% and 5.01%, respectively. All models recorded double-digit growth, with some exceeding 25%. Commercial vehicles also showed improvement, as semi-trailer tractors maintained two consecutive months of growth, while non-integrated passenger vehicles doubled their sales compared to previous months.
Zhu Yiping, assistant secretary-general of the China Association of Automobile Manufacturers, attributed the strong performance in March to the combined impact of seasonal trends and policy support. He noted that March has historically been a peak season for car sales, with seven months since 2005 seeing record-breaking sales, including five in March. The current growth, although not extremely high at 5% year-on-year, is considered a positive signal for the industry, especially given the high base from the same period last year.
In the first quarter of this year, domestic automobile production reached 2,567,600 units, while sales totaled 2,668,800, marking a 1.91% and 3.88% increase, respectively. Zhu pointed out that despite a decline in the third and fourth quarters of 2022, achieving even single-digit growth in the first quarter was challenging. He emphasized that policy support and expectations of economic improvement played a key role in driving sales.
Passenger cars outperformed commercial vehicles in terms of growth. Passenger car sales rose by 7.81%, with crossover vehicles increasing by 34.78%—a trend that has continued for three consecutive months. Sedans also saw a modest 3.01% growth. Low-emission cars, heavily influenced by government incentives, performed exceptionally well, with sales of 1.6-liter and below vehicles reaching 1,411,400 units, up 21.93% year-on-year. This represents a 14 percentage point increase over the industry average, with a market share of 70.72%, up 8.19 percentage points from the same period last year.
In contrast, commercial vehicles showed mixed results. While commercial trucks grew by 11.22%, other segments declined, with semi-trailer truck sales dropping by 70% year-on-year. Zhu explained that the expected economic recovery helped release pent-up demand from the second half of 2022, but rural vehicle sales had yet to make a significant impact.
He also highlighted that while overall production and sales showed low growth, the industry's economic performance remained weak. Main business income for auto enterprises above designated size fell by 9.42% year-on-year in January and February, and profits dropped by 50%. Key enterprise groups experienced even sharper declines, indicating broader challenges within the sector.
Car exports also faced a sharp downturn, with first-quarter exports totaling 61,000 units—a 62.06% drop from the same period last year. Top export companies saw significant declines as well.
Despite the positive March figures and the slight recovery in the first quarter, Zhu warned against excessive optimism. He stressed that structural challenges continue to affect the industry, and economic indicators remain under pressure. He urged the government to maintain supportive policies, particularly for exports and commercial vehicles, to help the industry achieve a more comprehensive recovery.
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