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By Wang Qing, Institute of Market Economy, DRC

Research Report, No.53, 2021 (Total 6118) 2021-3-16

Abstract: Due to effective prevention and control of COVID-19 pandemic and the steady pickup of residents’ consumption, China’s car market performance and car sales have gained a remarkable recovery. In 2020, 25.311 million units of home-made cars were sold, down by 1.9 percent year on year, a decrease smaller than that of 2019. The recovery of car market is mainly ascribed to the innate demand of China’s market based on potential growth. Currently, China’s car market has shifted from a mid-to-high growth to a mid-to-low growth. It is expected that by 2030, the number of car parc and the number of car ownership per thousand people will reach respectively 420 million units and 296 units, with car sales maintaining a 1.5 percent to 2 percent annual growth. Normally speaking, total car sales in 2021 will keep at the fairs level with that of 2020, promising to realize 0 percent to 2 percent growth. As the market will be affected by macro-economic regulation, the prevention and control of the pandemic and the stability of global supply chain in 2021, we need to focus on refining consumption policies and promoting the development of electronic vehicles, in a bid to realize the dual goals of stimulating consumption for the short term and pursuing green development for the mid-to-long term.

Keywords: consumption, cars, predictions, influencing factors