Featured Image

International News From the Field: China

China's slow recovery is marked by optimism and investments in various industries, particularly automotive, as electric vehicles outsold traditional combustion engine vehicles for the first time in April. For more industry intel and other tidbits, read on.
May 14, 2024

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

PicturePicture
Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
Recent international News
Are there signs of light at end of China’s economic tunnel? Manufacturing indexes bounce, risks remain, and new government measures boost economic growth. For more industry intel and other tidbits, read on.
China's economic pulse, gauged by electricity use and excavator sales, showcases growth. Driven by recovery and electrification trends, the largest manufacturing nation shows positive signs of recovery. For more industry intel and other tidbits, read on.
China has good reason to celebrate the Year of the Dragon after a record-breaking 2023 for automotive production. Continued growth is expected, and demand for imported machine tools is increasing. For more industry intel and other tidbits, read on.
Are there still manufacturing opportunities in China? The world’s second-largest economy faces setbacks from the pandemic, uncertainty in real estate, and weakened global demand for its exports. For more industry intel and other tidbits, read on.
Foreign investment use in China shrank in 2023, but new measures are aimed at its increase. With stimulus and confrontations with structural slowdowns, is the economic recovery finally gaining traction? For more industry intel and other tidbits, read on.
Similar News
undefined
International
By Conchi Aranguren | May 24, 2024

Numerous investments and initiatives in Europe’s railway industry will sustain production for years to come. Spain’s automotive industry and the U.K.’s nuclear power sector see significant developments. For more industry intel and other tidbits, read on.

5 min
undefined
Technology
By Bonnie Gurney | Mar 18, 2024

While additive manufacturing has significantly matured, further development depends on the current market evolving, which will require developing opportunities to showcase it as well as changing how we think of it – that it's more than 3D printing a part.

6 min
undefined
Technology
By Peter Zelinski | May 01, 2024

Formnext Chicago arrives next year. AMT's Doug Woods, Mesago's Sascha Wenzler, and Gardner's Peter Zelinski discuss the long road to this event, the importance of Formnext coming to additive's biggest market, and the competitive 2025 event landscape.

7 min