New Energy And Exports Have Become The Two Driving Forces Of The Auto Industry

From January to July this year, automobile production and sales reached 14.571 million units and 14.477 million units respectively, with production up 0.8 percent year-on-year and sales down 2 percent . Compared with January-June, the production growth rate from negative to positive, and sales decline continued to narrow.

Despite facing a slow sales season in the market, the Chinese auto market delivered a notable performance in July with the effective control of the new crown pneumonia epidemic in many parts of the country, as well as the continued drive of the purchase tax exemption policy and local consumption promotion policies.

"In July, the automotive industry PMI was higher than 52 percent , better than the overall manufacturing industry, maintaining expansion for two consecutive months, and production and sales continued to recover. During the month, auto production and sales reached 2.455 million and 2.42 million units respectively, down 1.8 percent and 3.3 percent , but up 31.5 percent and 29.7 percent , with growth rates higher than the previous month

Although the whole July auto market showed full vitality, but this year, with the new energy vehicle downstream demand soaring and other factors, the domestic power battery raw material prices have exploded, to a certain extent, affecting the development of the new energy vehicle industry. This has also triggered a debate between vehicle enterprises and power battery companies about "where the profits go".

For this issue, Chen Shihua said that this year, China's new energy vehicle market is growing rapidly, and the market decided the price of raw materials is "rising ship". However, from the current price of lithium carbonate, the whole lithium carbonate market is in a deformed state.

Starting in August 2021, automotive production and sales are affected by the shortage of chips. At present, the chip shortage problem still exists but has been better than last year. According to the China Automobile Association forecast, passenger car production and sales in August and September this year will achieve rapid growth.

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