CHINA AUTO: Upstream raw material prices underpinned by strong sales, output in Oct

Continued growth in China’s automotive sales and output during October has underpinned prices for some key upstream raw materials.

China produced a total of 2.55 million vehicles last month, an increase of 11% from a year earlier, according to data released by the China Association of Automobile Manufacturers (CAAM) on Wednesday November 11. This marked the seventh consecutive month that both output and sales have risen.
Notably, output of new energy vehicles (NEVs) surged by 69.7% year on year to 167,000 units in October.
CAAM attributed the output and sales growth to a recovery in consumers’ confidence amid government policies aimed at stimulating domestic demand.

The NEV sector continued to recover markedly in October with monthly output and sales reaching their highest so far this year after the sector witnessed its first year-on-year growth in output and sales for 2020 back in July. The increase in sales last month was driven by higher sales of certain types of models, including the Tesla Model 3, alongside effective...

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Jessica Zong

Susan Zou

Hui Li

Carrie Shi

Miranda Song

Sally Zhang

November 13, 2020

04:00 GMT

Beijing, Shanghai