China forecasts moderate increase in car sales for 2024
Date
12/12/2023 3:29:01 AM
(MENAFN) The China Automobile Manufacturers Association has forecasted a moderate increase in car sales for the year 2024, estimating that approximately 31 million units will be sold, reflecting a three percent growth compared to 2023.
According to the association's projections, passenger car sales are expected to experience a 3.1 percent uptick, reaching 26.8 million units in the coming year. This growth, however, signifies a deceleration from the notable 10.3 percent increase witnessed in the current year. Notably, the data also indicates a slowdown in the sales of new energy vehicles, with a projected growth rate of 20 percent in 2024, down from a substantial jump of 36.5 percent in 2023. Concurrently, car exports are anticipated to rise to approximately 5.5 million units, compared to 4.8 million units in the present year.
Xu Haidong, a senior official at the association, expressed that the automotive market is poised to encounter challenges stemming from factors such as shrinking demand, supply shocks, and subdued expectations in 2024. Despite these challenges, China is on the verge of becoming the world's leading car exporter this year, with its car exports surpassing 3.9 million units in the first ten months.
The surge in China's automobile exports became evident in the first quarter of the current year, where the volume reached 1.07 million vehicles. This marked a significant milestone as China, for the first time, surpassed Japan to become the world's largest automobile exporter. The export volume for the initial ten months of the year recorded an impressive year-on-year increase of 59.7 percent, totaling 3.92 million units.
In summary, while China anticipates a modest growth trajectory in car sales for 2024, challenges such as shifting demand dynamics and supply uncertainties remain on the horizon, making the automotive landscape unpredictable in the coming year.
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