In March, China's Purchasing Managers' Index (PMI) was 50.8, a 1.7% increase compared to the previous month. This is a positive sign, as the index has been below the tipping point of 50 for the five consecutive months since October 2023. This indicates that the manufacturing sector is now back on track.
One of the most notable developments is in the automotive industry. During the first two weeks of April, electric vehicles (EVs) outsold fuel vehicles, selling 260,000 units compared to 256,000 units. This means that EVs now account for 50.39% of total vehicle sales, which is a significant milestone for the industry. This breakthrough is not only important for the popularization of new technologies but also as a "psychological point" for consumer acceptance of EVs.
According to the Chinese Association of Automobile Manufacturers, from January to March, the automobile industry witnessed a growth in production and sales, reaching 6.61 million units and 6.72 million units, respectively, an increase of 6.4% and 10.6% compared to the same period last year. In March, the production and sales of automobiles reached 2.69 million units and 2.69 million units, respectively, an increase of 4% and 9.9% compared to the same period last year.
Similarly, the production and sales of EVs witnessed a significant growth in the first quarter, reaching 2.12 million units and 2.09 million units, respectively, an increase of 28.2% and 31.8% compared to the same period last year. EV sales accounted for 31.1% of total new vehicle sales. In March, the production and sales of EVs reached 863,000 units and 883,000 units, respectively, an increase of 28.1% and 35.3% compared to the same period last year. EV sales accounted for 32.8% of total new vehicle sales.
Moreover, the export of total vehicles also witnessed growth in the first quarter, reaching 1.32 million units, an increase of 33.2% compared to the same period last year. The export of EVs reached 307,000 units, an increase of 23.8% compared to the same period last year. In March, the export of total vehicles reached 502,000 units, an increase of 37.9% compared to the same period last year. The export of EVs reached 124,000 units, an increase of 59.4% compared to the same period last year.
According to the China Machine Tool & Tool Builders’ Association, the China CNC Machine Tool Fair 2024 (CCMT2024), held April 8-12, saw a record-high 124,695 visitors, an increase of 58.49% compared to CCMT2018. The data does not include the staff of the sponsor and other assistant personnel.
A few recently announced projects and investment news items are listed below:
Anhui Wuyao Automotive Glass will invest $273 million to produce automotive glass, with an annual output of 4 million pieces for EVs in Bengbu.
Mingcycle Vehicle Group will invest $136 million to produce e-bikes with an annual output of 3.3 million units in Huaian.
Shandong Hongchen Automotive Components will invest $206 million to produce lightweight auto chassis with an annual output 500,000 units in Bingzhou.
Weipengsheng (Shandong) Vacuum Equipment will invest $34.5 million to manufacture dry screw vacuum pumps and systems with an annual output of 1,500 sets.
Xuzhou Youyi Power Equipment will invest $41.3 million to produce autonomous guided vehicles, with an annual output of 20,000 units in Jiangsu.
Zhejiang Boxi Science & Technology Co. will invest $275 million to produce EV components and structural parts with an annual capacity of 1 million kits.
Far Spinning Wuxi will invest $76 million to produce key components for airbags with an annual output 20.29 million parts.
Yancheng City Xin Petroleum Machinery will invest $68 million to manufacture dual hydraulic/pneumatic PDM mud motors for deep oil drilling.
Lear Automotive Components will invest $24.8 million to build a facility and produce auto seats and components.
Haozhi Juhe Science & Technology will invest $490 million to build a facility to manufacture CTC chassis (cell to chassis) with an annual output of 300,000 units in Chuzhou.
Friction One Xiantao will invest $68 million to import an automatic production line of brake pads, robotics, and ancillaries (1,000 kits total), with an annual output of 10 million pieces of brake pads.
For more information, please contact Fred Qian at fredqian@amtchina.org
