Time: 2024-07-25
The automotive industry is accelerating its development: In 2023, the wholesale sales of passenger vehicles in China reached 255.60 million units, with a year-on-year growth of 10.3%, setting a new historical high. From January to April 2024, the sales volume was 7.55 million units, with a year-on-year growth of 8.5%, continuing the high-speed growth trend. Automobile exports are growing at a faster rate. In April 2024, China's automobile exports increased by as much as 31.3%.
Domestic automotive brands are developing rapidly: In 2023, the share of domestic brands rose to 56.2%. Gasgoo Research Institute predicts that it will rise to 62% in 2024 and reach 70% in 2030. Currently, the share of domestic brands of new energy vehicles is as high as about 80%. Chinese automobiles show trends of domestication and low pricing, bringing huge opportunities for domestic automotive parts. Just looking at the automotive interiors that are most relevant to the company's products, domestic listed companies have seen both revenue and profit in the automotive interior track grow rapidly against the economic environment since the second quarter of 2023. Moreover, with the further increase in the penetration rate of automotive intelligence, the added value of automotive interiors is expected to further increase.
The development of the automotive industry has a huge demand for PVC: Currently, the average usage of plastics in a vehicle reaches 200-300 kilograms, among which polypropylene accounts for more than 32% of the plastic usage, polyurethane accounts for about 17%, and PVC closely follows with 16%. PVC parts are mainly concentrated in dashboard skins, steering wheels, linings, automotive flooring materials and automotive wiring harness cables. Converted from production volume, the output of China's automotive industry in 2023 drove the consumption of PVC to 970,000 - 1.45 million tons.
