Page 198 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
of 46%. Given the current auto chip shortage that year earlier to 4.2 million. Their market share rose
has been a global supply chain issue, the impact 5.7 percentage points to 42% (McDonald).
caused by the chip shortage ended up being
transitory and short-term (GT, China Auto Sector). Pickup Trucks
Auto Market The China pickup truck market surprisingly
became the world’s second largest in 2020, behind
Vehicle sales in China fell 3% in May 2021 from only the US. This is incredible considering that
the same month a year earlier, snapping a streak China has the world’s strictest rules when it comes
of 13 consecutive months of gains since April 2020. to pickup trucks. Also, pickups haven’t historically
Overall sales in the world's biggest car market been seen as cool or popular like they are here in
totaled 2.13 million vehicles in May, data from the the US. But it appears that is changing. China pickup
China Association of Automobile Manufacturers truck sales broke records in 2020, experiencing a
(CAAM) showed. China sold 10.88 million vehicles 10% jump in sales in 2021 to 452,000 units. The
between January and May, up 36% from the same numbers are not that impressive compared to the
period a year earlier (Reuters, Auto Sales Fell). US, but it is still very significant because the industry
is in its very early stages. In China, pickups, known as
Still, China’s auto sales rose 27% in the first half pika, have been long regarded as a utilitarian tool.
of 2021 from a year earlier but still were below They often lack the comforts of other passenger
pre-pandemic levels, and production and sales fell vehicles and weren’t something that the average
in June due to global shortages of processor chips. middle class or wealthy Chinese urban consumer
Sales of SUVs, sedans and minivans from January would consider purchasing. They’d much rather opt
to June in the global industry's biggest market rose for the newest SUV or sports car. This is very unlike
to 10 million. Total vehicle sales, including trucks in the US, where pickups are seen everywhere and
and buses, rose 25.6% from a year earlier to 12.9 considered the “Cowboy’s Cadillac”. What changed
million. Compared with pre-pandemic levels in is that over the past few years China’s outdoor
2019, passenger vehicle sales were off 1.4% in sports and sports tourism industries have boomed
the first half. Total vehicle sales were down 4.4%. as Chinese consumers become more health
Passenger vehicle production fell 13.7% in June conscious. Hiking, camping, fishing, rock climbing
from a year earlier while sales were down 11.1% at and off-roading are some of the consumers’
1.6 million. Sales showed an obvious decline after favorite outdoor activities. While this trend started
May. Passenger vehicles were mostly affected taking off prior to the Covid pandemic, it has really
by an insufficient supply of chips. China’s auto boomed as consumers are restricted to traveling
demand already was weakening due to consumer domestically. Places such as Tibet, Inner Mongolia,
unease about slowing economic growth and the Sichuan, Yunnan, and Ningxia have become very
trade war with Washington before dealerships popular as people look to get out into the great
were shut down in 2020 to fight the virus outbreak. outdoors away from other people. As a result,
China’s economy reopened relatively early after pickup trucks became the number one choice
the ruling Communist Party declared victory over for people who wants to travel across China. It
the virus in March. But passenger vehicle sales fell allows them to carry supplies and tents into the
22.4% in the first half of 2020, setting a low base beautiful no-man’s land. As young people become
for comparison in 2021. Demand was propped more interested in a free and active lifestyle, their
up by sales of electric and gasoline-electric perceptions of pickup trucks has shifted. This shift
hybrid vehicles, though they still are a fraction is also influenced by their exposure to western
of the total. EV sales in the first half of 2020 rose culture. From traveling abroad or watching movies,
200% to 1.2 million, but demand for them also is they see pickup trucks as the ultimate freedom
cooling, according to CAAM. Sales growth in June symbol. Besides the image, a key thing that has
decelerated to 140% over a year earlier, hitting stopped many consumers from purchasing a
256,000 vehicles. Passenger car sales by Chinese pickup are the regulations. China has many
brands in the first half of 2020 rose 46.8% from a regulations around when and where you can drive
198
of 46%. Given the current auto chip shortage that year earlier to 4.2 million. Their market share rose
has been a global supply chain issue, the impact 5.7 percentage points to 42% (McDonald).
caused by the chip shortage ended up being
transitory and short-term (GT, China Auto Sector). Pickup Trucks
Auto Market The China pickup truck market surprisingly
became the world’s second largest in 2020, behind
Vehicle sales in China fell 3% in May 2021 from only the US. This is incredible considering that
the same month a year earlier, snapping a streak China has the world’s strictest rules when it comes
of 13 consecutive months of gains since April 2020. to pickup trucks. Also, pickups haven’t historically
Overall sales in the world's biggest car market been seen as cool or popular like they are here in
totaled 2.13 million vehicles in May, data from the the US. But it appears that is changing. China pickup
China Association of Automobile Manufacturers truck sales broke records in 2020, experiencing a
(CAAM) showed. China sold 10.88 million vehicles 10% jump in sales in 2021 to 452,000 units. The
between January and May, up 36% from the same numbers are not that impressive compared to the
period a year earlier (Reuters, Auto Sales Fell). US, but it is still very significant because the industry
is in its very early stages. In China, pickups, known as
Still, China’s auto sales rose 27% in the first half pika, have been long regarded as a utilitarian tool.
of 2021 from a year earlier but still were below They often lack the comforts of other passenger
pre-pandemic levels, and production and sales fell vehicles and weren’t something that the average
in June due to global shortages of processor chips. middle class or wealthy Chinese urban consumer
Sales of SUVs, sedans and minivans from January would consider purchasing. They’d much rather opt
to June in the global industry's biggest market rose for the newest SUV or sports car. This is very unlike
to 10 million. Total vehicle sales, including trucks in the US, where pickups are seen everywhere and
and buses, rose 25.6% from a year earlier to 12.9 considered the “Cowboy’s Cadillac”. What changed
million. Compared with pre-pandemic levels in is that over the past few years China’s outdoor
2019, passenger vehicle sales were off 1.4% in sports and sports tourism industries have boomed
the first half. Total vehicle sales were down 4.4%. as Chinese consumers become more health
Passenger vehicle production fell 13.7% in June conscious. Hiking, camping, fishing, rock climbing
from a year earlier while sales were down 11.1% at and off-roading are some of the consumers’
1.6 million. Sales showed an obvious decline after favorite outdoor activities. While this trend started
May. Passenger vehicles were mostly affected taking off prior to the Covid pandemic, it has really
by an insufficient supply of chips. China’s auto boomed as consumers are restricted to traveling
demand already was weakening due to consumer domestically. Places such as Tibet, Inner Mongolia,
unease about slowing economic growth and the Sichuan, Yunnan, and Ningxia have become very
trade war with Washington before dealerships popular as people look to get out into the great
were shut down in 2020 to fight the virus outbreak. outdoors away from other people. As a result,
China’s economy reopened relatively early after pickup trucks became the number one choice
the ruling Communist Party declared victory over for people who wants to travel across China. It
the virus in March. But passenger vehicle sales fell allows them to carry supplies and tents into the
22.4% in the first half of 2020, setting a low base beautiful no-man’s land. As young people become
for comparison in 2021. Demand was propped more interested in a free and active lifestyle, their
up by sales of electric and gasoline-electric perceptions of pickup trucks has shifted. This shift
hybrid vehicles, though they still are a fraction is also influenced by their exposure to western
of the total. EV sales in the first half of 2020 rose culture. From traveling abroad or watching movies,
200% to 1.2 million, but demand for them also is they see pickup trucks as the ultimate freedom
cooling, according to CAAM. Sales growth in June symbol. Besides the image, a key thing that has
decelerated to 140% over a year earlier, hitting stopped many consumers from purchasing a
256,000 vehicles. Passenger car sales by Chinese pickup are the regulations. China has many
brands in the first half of 2020 rose 46.8% from a regulations around when and where you can drive
198
