China's NEV production, sales rise in 2020

China's new energy vehicle (NEV) production and sales increased in 2020 from a year earlier, as a recovery driven by government stimulus measures in the second half of the year outweighed losses in the first quarter when the Covid-19 pandemic emerged.

The country produced 1.366mn NEVs in 2020, up by 7.5pc from 2019, with sales rising by 10.9pc to 1.367mn, according to China's automotive manufacturers association (CAAM).

The domestic NEV industry began to recover in the second quarter because of the government's stimulus measures to encourage the use and purchases of such vehicles, following disruptions in the first quarter.

China will reduce its subsidies for regular NEVs by 20pc in 2021 from a year earlier, although the cut will have little impact on the NEV market this year as it is within market participants' expectations.

The country produced 235,000 NEVs in December 2020, up by 55.7pc from a year earlier, with sales up by 49.5pc to 248,000 units over the same period.

Domestic NEV manufacturers have raised their output since November to meet their annual targets, bolstering demand for power batteries and their metal feedstock, such as nickel, cobalt and lithium, according to market participants.

Argus last assessed prices for 99.8pc grade cobalt metal at 275-300 yuan/kg ($42.61-46.48/kg) ex-works yesterday, up by Yn5/kg from 7 January. China's power battery producers have been increasing production since December and enquiring to secure metal feedstock supplies to be delivered after the 11-17 February lunar new year holiday.

China&#39;s NEV production, sales (units) Dec&#39;20 m-o-m &#177; % y-o-y &#177; % Jan-Dec 2020 &#177; % Total production 235,000 17.3 55.7 1,366,000 7.5 Pure-electric 203,000 23.8 57.4 1,105,000 5.4 Plug-in hybrids 32,400 -1.8 70.5 260,000 18.5 Fuel cell 138 -52.1 -90.2 1,000 -57.5 Total sales 248,000 22.0 49.5 1,367,000 10.9 Pure-electric 211,000 26.3 50.7 1,115,000 11.6 Plug-in hybrids 37,300 13.0 77.6 251,000 8.4 Fuel cell 102 -64.8 -92.7 1,000 -56.8 Source: CAAM

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