Recently, the China Passenger Car Association stated at the October 2021 National Passenger Car Market Analysis Monthly Conference that the darkest moment for the supply of automotive chips in the third quarter has passed, and the supply of chips in October increased by about 10% month-on-month, showing a positive trend. Chip supply gradually improved at the end of September, which contributed to the rise in production and sales in October.
From the perspective of production capacity, according to the statistics of the China Passenger Car Association, the cumulative production of passenger cars from January to October 2021 was 16.259 million units, a year-on-year increase of 9.3%; in terms of sales, the cumulative retail sales of passenger cars from January to October reached 16.227 million units, a year-on-year increase. An increase of 8.7%.
In this regard, the Federation of Passenger Transport Associations explained that the impact of the recent chip shortage is still relatively obvious, but the independent car companies flexibly adjust the configuration to resolve the delivery pressure, and the overall performance is good.
Although the adverse impact of the “core shortage” on automobile production and sales has eased slightly, it is also facing other disturbances, such as epidemics, floods, power cuts and other uncontrollable conditions. This means that there are still bottlenecks restricting supply in the auto market.
It is worth noting that while traditional vehicles are still suffering from decline, the new energy vehicle market has stepped out of the curve of “independence and self-improvement”. According to data from the Passenger Federation, the retail sales of new energy passenger vehicles reached 321,000 in October, a year-on-year increase of 141.1%. From January to October, the retail sales of new energy vehicles was 2.139 million, a year-on-year increase of 191.9%.
In addition to the rapid development of the domestic market, the export of new energy vehicles has also achieved explosive growth. Among them, in October, Tesla China exported 40,666 vehicles, SAIC passenger cars exported 6,659 vehicles, BYD 1,026 vehicles, and FAW Hongqi 424 vehicles. The export of new energy vehicles by other car companies is also gaining momentum.
The China Passenger Car Association stated that the production and sales of the auto market starting in October is the best time to increase inventory in winter. The winter auto market must have inventory reserves in the autumn. The supply capacity of auto companies to build and store inventory in October this year is far from expectations, and the overall inventory is still in the low level. The inventory continues to be unable to be replenished, causing difficulties in the impulse at the end of the year, and some demand is expected to be transferred to 2022.