China’s new energy vehicle production hits new high in July, sales soar: CAAM

China's

China’s new energy vehicle output reached a new high of 617,000 units in July, surging 117.3% year on year and 4.5% higher on the month, the China Association of Automobile Manufacturers said Aug. 11.

New energy vehicles include pure and hybrid electric vehicles.

NEV sales reached 593,000 units in July, up 118.8% on the year, but slightly down from a month earlier, CAAM data showed.

NEVs comprised 24.5% of China’s total vehicle sales in July. This was for the fifth straight month when NEV’s market share in total vehicle sales has remained above 20%, S&P Global Commodity Insights calculations showed.

In the first seven months of 2022, total NEV output and sales were 3.28 million and 3.2 million units, up 118% and 116.1%, respectively, compared with the same period last year, CAAM data showed.

It could be seen from July sales that the reduction of the purchase tax for some fuel passenger cars had limited impact on EV sales. July and August used to be the off-peak season for automobile sales.

The China Passenger Car Association raised its forecast for electric passenger car sales to 6 million units in 2022 from its previous estimate of 5.5 million units made at the end of last year.

The CPCA expected its forecast to be further raised in early fourth quarter.

China’s total electric vehicle sales will reach 6.5 million units in 2022 on expectations of strong growth in the months ahead, the CPCA said.

The CPCA data counts electric vehicles as passenger cars and commercial vehicles such as buses.

China’s vehicle output and sales both will continue to see fast growth in the months ahead, as production by automakers is recovering from the impact of the pandemic while a series of incentive policies is also boosting vehicle purchases, industry sources said.

Related infographic: China’s explosive EV growth to stay on track 

Lithium price, battery output

Prices of Chinese lithium chemicals — the key ingredients for power battery used in electric vehicles — will stay elevated in the months ahead amid increasing demand and support from high raw materials prices, sources said.

Chinese lithium salts prices have inched up in the past few weeks as the market retained its bullish momentum.

Platts assessed battery-grade lithium carbonate at Yuan 480,500/mt ($71,290/mt) Aug. 11 on a DDP China basis, up Yuan 3,500/mt on the week and Yuan 10,400/mt on the month.

Platts is part of S&P Global.

China’s output of power battery — the major consumer for battery metals — reached a new high of 47.2 GWh in July, up 172.2% from a year earlier and 14.4% month on month, according to separate data released by the China Automobile Battery Innovation Alliance.

Source: Spglobal.com

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