CITIC Securities Is Optimist over New Energy Vehicle Sales in 2022, Despite Recent Price Hikes

SHANGHAI, Mar 31 (SMM) - CITIC Securities pointed out that the the price increase of lithium carbonate has triggered the recent collective price increase of new energy car companies and expected that NEV makers and battery factories will face certain pressure on their gross profit margins this year. The price hikes are estimated to affect orders for about only a month.

Due to the current sufficient orders at new energy vehicle companies, the penetration rate of new energy vehicles in March is expected to hit a record high. In the short term, orders may be relatively low in April.

However, considering the continuous upgrade of cars with the emergence of new car models, it is expected that NEV market will continue to boom in 2022. CITIC Securities maintained its forecast that China’s NEV sales will hit 5.5 million units this year.