Passenger car market retail sales reached 1.246 million units in February, up 4.2% y/y

On March 8, the Automobile Market Research Branch of the China Association of Automobile Dealers (Passenger Vehicle Market Information Joint Committee) released its analysis
of the national passenger car market in February 2022.
Retail sales of passenger cars reached 1.
246 million units in February 2022, up 4.
2% y/y and down 40.
0
% m/m.
Under the unfavorable circumstances of this year's Spring Festival 12 days earlier than last year, the cumulative retail sales from January to February were 3.
324 million units, 60,000 units less than in 21 years, and the overall trend was better
.

Since the Spring Festival holiday starts on January 31, the production suspension before the holiday and the purchase of cars by consumers will be a few days earlier, resulting in a large
loss of production and sales in January.
After the Spring Festival this year, some enterprises started work earlier, and the loss of production in February due to the Spring Festival factor was less, which drove the month-on-month and year-on-year performance of retail sales in February to grow
very well.

Since the autumn and winter of last year, the epidemic prevention and control has been repeated, but this year, the scale of residents' return to their hometowns has increased significantly, and then the epidemic spread in February exceeded expectations, involving 18 provinces and cities, and concentrated in developed areas, a larger number of residents returned to their hometowns, and more migrant workers in their own provinces employment trend, forming a certain support
for car purchase consumption in some western provinces, counties and townships.
Although oil prices are high, it has an adverse impact
on the consumption of traditional fuel vehicles.
However, with the spread of the epidemic in 18 provinces in February, many families have a high awareness of safe travel during the school season, further promoting the purchase of
new energy vehicles.

With the gradual strengthening of production and wholesale sales in the past few months, the overall market supply has shown a recovery trend, and manufacturers are actively welcoming the "red start" of the New Year, and February is also a continuation of the "red door", and high growth has boosted morale
.

Retail sales of luxury cars in February were 160,000 units, down 3% y/y and 44%
m/m.
Retail sales of luxury cars strengthened sharply in early January and failed to extend the January trend
in February.

Retail sales of own-brand units in February were 540,000 units, up 14% y/y and down 42%
m/m.
The share of domestic retail sales of self-owned brands in February was 44%, an increase of 4.
3 percentage points year-on-year; the cumulative share from January to February was 44%, an increase of 4.
7 percentage points
over the same period in 2021.
The wholesale market share of independent brands in February was 43.
4%, an increase of 1.
1 percentage points over the same period; the cumulative share of independent brands from January to February was 45%, an increase of 2.
8 percentage points
over the same period in 2021.
The performance of leading independent brand enterprises is differentiated, and independent enterprises have achieved significant increments in the new energy market, so traditional car brands such as BYD have shown high year-on-year growth
.

Retail sales of mainstream joint venture brands in February were 550,000 units, down 1% y/y and 36%
m/m.
The retail share of Japanese brands in February was 23.
1%, up 1.
6 percentage points
year-on-year.
The share of German brands was 20.
5%, down 4 percentage points
year-on-year.
The retail share of the US market reached 9.
1%, down 0.
6 percentage points
year-on-year.
The share of European companies increased by 0.
1 percentage points
.

According to the statistics of the China Passenger Vehicle Association in February, passenger car exports (including finished vehicles and CKD) were 133,000 units, up 69% y/y and down only 21%
m/m.
The instability of the external environment brings uncertainty risks
to the export of independent brands.
NEVs accounted for 34%
of total exports in February.
Exports of own-brand vehicles in February reached 87,000 units, up 44% y/y.
Exports of joint ventures and luxury brands reached 46,000 units, up 153%
y/y.

Passenger car production in February was 1.
492 million units, up 31.
4% y/y and down 27.
0% m/m
.
Among them, luxury brand production increased by 15% year-on-year and decreased by 27% month-on-month; Joint venture brand production increased 31% year-on-year and decreased 22% sequentially; Own brand production increased 38% year-on-year and decreased 31%
sequentially.

Although the production of the Spring Festival factor was slightly lost, the production and sales growth of the car market in February was relatively good, and the supply of joint venture chips gradually improved, which promoted the steady development of
production and sales in February.