China’s Auto Production and Sales Hit Record High in 2023
According to the China Association of Automobile Manufacturers, 2023 saw record-breaking automobile production and sales in China. Both production and sales exceeded 30 million units for the first time, reaching 30.161 million units and 30.094 million units respectively, marking an 11.6% and 12% year-on-year increase.
UBS Group’s latest forecast predicts that Chinese automakers will sell 5 million vehicles overseas in 2024, solidifying China’s position as the world‘s largest auto exporter. This is expected to drive significant growth in the industry.
Since 2023, automobile stocks have seen an average increase of 5.02%, outperforming the overall market. Companies such as Yutong Bus, Thalys, and Jiangling Motors have shown outstanding performance, with their stocks rising by 125.39%, 71.42%, and 53.36% respectively.
Several major Chinese vehicle companies with a market value of over 100 billion yuan have reported exceptional sales results in 2023. BYD achieved annual sales of 3.0244 million vehicles, surpassing its target of 3 million vehicles. Great Wall Motor saw a 15.3% year-on-year increase with annual sales reaching 1.231 million units, while SAIC Motor maintained its position as the country’s top seller with 5.02 million complete vehicles sold throughout the year.
Yutong Bus, the first to release a performance forecast, expects a significant year-on-year increase in net profit and sales for 2023. Export sales for the company have also surged by 78.87%.
Looking ahead, institutions are optimistic about the performance of several other automobile stocks in 2023, with forecasts indicating significant growth for companies such as BYD, Changan Automobile, Cyrus, and JAC Automobile.
Overall, the strong performance of the Chinese automobile industry in 2023 has garnered attention from investors and analysts, with expectations of continued growth in the coming years.