Will fuel cars be miserable in 2023?

In current form, fuel car sales will be down in 2023.

Full year sales in 2022 were 22,994,900 units, an increase of 9.2%. Among them, sales of high-end vehicles were 8,814,700 units, up 16.3 percent, sales of mid-range vehicles were 11,217,200 units, up 4.2 percent, and sales of low-end vehicles were 2,962,900 units, up 9.2 percent.

In 2022, there is a possibility of a further rebound in the market with a double surge in auto spending power and consumption levels. However, the uncertainty of rebound is increasing with the termination of fuel vehicle tax reduction policy + exit of new energy vehicle subsidies in 2023.

Sales trend

Passenger car production and sales continue to rise in 2022, is built on the basis of the purchase tax halved levy policy stimulus, and the fourth quarter of the 10 ~ November for two consecutive months of sales declined in the chain of two months, the termination of the policy of the December market, although the tail end of the market, but the sales of the same month is still lower than the level of the same period of the previous year, the sales. Meaning that the policy stimulus weakened, the car market continues to face greater resistance to growth.

In the past five years, China's brand market share has changed in line with the overall trend of passenger cars. In the passenger car production and sales decline in 2018 to 2020, China's brand share fell from 41.6% to 37.6%. 2021 passenger car market rebound, China's brand share rose sharply to 44.5%.