Narrative: China Dual Credit 2023 Results
China's PV market hit record CAFC and NEV surpluses in 2023—BYD dominated, Tesla led global OEMs, while VW, GM, and others struggled to keep up. What’s next?
In 2023, China had 119 passenger vehicle (PV) manufacturers and importers, down from 125 in 2022. New energy vehicles (NEVs) made up 35.0% of PVs, a 7.2% increase from the previous year, reducing average fuel consumption to 4.2l/100km (–8.9% YoY). Total PV supply rose by 3.4% YoY to 22.5 million vehicles.
China achieved record CAFC and NEV surpluses, with 36.0 million and 20.8 million credits, respectively. BYD led in both categories, while Tesla was the top-performing international OEM. In contrast, Volkswagen (VW), General Motors (GM), Nissan, Honda, and Toyota struggled with compliance due to low NEV production. Only 50 out of 119 manufacturers met both credit targets. As dual credit regulations tighten, these international OEMs must expand NEV offerings to meet future compliance standards.
