Automobile’s sales in China saw a growth for the first time in 2021 since 2017, partly due to a rise in new energy vehicles (NEVs), specified industry data on January 12, 2022.
After once-a-month sales of 2.79 million vehicles last month, which set 2021’s overall sales at 26.28 million, total auto sales in the world’s largest car industry grew 3.8% year by year.
China Association of Automobile Manufacturers, CAAM, declared in its recent statement that 2022 is estimated to be a better year regarding auto production and sales. Potentially, this year obstacles including chip undersupply as well as expensive raw materials will be less severe, the statement added. The country’s auto business started shrinking in 2018 on account of a business conflict between the U.S. and China.
China car industry tried to rebound by mid-2020; however, it was brought down due to semiconductors insufficiency across the world, leading to a global halt in production.
In the meantime, NEVs sales gained a momentum, a rise of 157.5% last year.
Last December saw a growth in NEVs sales, 114% year-on-year. CAAM’s expectation of a jump of 5.4% in auto sales and 47% rise in NEV sales reveals the country’s attempt to promote the car market and cut back air pollution. China will also bring down subsidies on NEVs by 30% this year, in this regard.