Market Trends of china mlcc Industry
The development of the e-commerce industry is expected to propel the demand for light commercial vehicles
- Pickups, a small light-vehicle segment in the Chinese market, are poised for robust growth as more governments relax rules over their use. The total production of light commercial vehicles in 2019 was 2 million units, and the sales volume of light trucks in the country reached 1.9 million units, achieving continuous growth.
- The sales of light trucks have grown steadily in the past two years. Due to the country canceling the product category of low-speed trucks and the rapid development of domestic e-commerce express logistics and cold chain transportation, the market demand for light trucks continued to increase, with a Y-o-Y growth of 7.44% in 2020. Chinese light truck manufacturers designed their related products accordingly to cope with the complex usage environment.
- In 2022, China led in terms of overall electric LCV sales, with over 130 million units sold and nearly 15% of LCVs sold being electric. Subsidies for battery electric and fuel cell trucks and vocational vehicles (including LCVs) have decreased in recent years, but zero-emission commercial truck sales have been growing since 2020, even as subsidies per vehicle have declined, indicating the increasing commercial competitiveness of electric trucks. With the continuous development of the country's express delivery and logistics industry, the overall light truck sales demand is expected to maintain a growth trend in the medium and long term.
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Rapid urbanization and advanced vehicle technology are expected to increase the demand for passenger vehicles
- China has one of the fastest-growing auto industries and accounts for a major presence of original equipment manufacturers (OEMs) globally. Passenger cars were a key segment of the Chinese automotive industry, producing 21.38 million units in 2019. Factors such as increasing disposable income, rapid urbanization, demand for new cars from lower-tier cities, and low vehicle costs are driving the growth of passenger vehicles in China.
- More electric cars were sold in China in 2021 (3.3 million) than in the world in 2020 (3.0 million). China’s fleet of electric cars remained the world’s largest at 7.8 million in 2021, which was more than double the stock of 2019 before the COVID-19 pandemic. Over 2.7 million BEVs were sold in China in 2021, accounting for 82% of new electric car sales.
- Electric cars accounted for 16% of domestic car sales in 2021, up from 5% in 2020, and reached a monthly share of 20% in December 2021, reflecting a much quicker recovery of the EV market relative to conventional cars. This impressive growth came alongside government efforts to accelerate decarbonization in the new 14th Five-Year Plan (FYP) (2021-2025), continuing the trend of progressively strengthening policy support for EV markets in the past few FYP periods. The current FYP includes medium-term objectives in transport, such as reaching an annual average of 20% market share for electric car sales in 2025.
- Stringent emission norms, fluctuating fuel prices, and the growing demand from customers for eco-friendly transportation caused the production of passenger vehicles to witness a Y-o-Y growth of 11.15% in 2022, and this growth is expected to continue in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Governmental relaxations pertaining to regulations within the mining sector have led to a surplus in copper production
- Silver prices are still recovering from the COVID-19 pandemic's effects
- The pandemic-related restrictions across the country, as well as weak macroeconomic conditions, impeded the market's expansion
- The rapid progress of technology and the robustness of laptop manufacturing operations in the country are driving the demand
- Saturation and fierce competition among various manufacturers are expected to decline the market
- The continuous lockdowns, online education, and employees working from home are driving the demand
- The rising demand for clean energy public transport is increasing the demand for MLCCs
- The tremendous adoption rate of hybrid and electric vehicles due to government norms to drive the market
- Beneficial government subsidies and policies are driving the production of PHEVs
- Increased public and private sector investments are driving the demand
- The relaxation of industry regulations is surging the prices
- The heat waves and rapidly growing urban populations with increasing disposable income are expected to surge the demand
- The rising number of gamers and the increasing demand for innovative technologies such as augmented reality and virtual reality are driving the demand
- The demand for frozen and clean food and the increasing infrastructure projects are surging the demand
- The rising digital content consumption and increasing storage capabilities of devices are driving the demand
- The advanced innovations in TVs and streaming services like OTT are driving the demand
- Electric heavy-duty trucks are expected to have a positive impact on the market
- Stringent government regulations on vehicle emissions to drive the market
- Demand for bulk production is propelling the market
