China’s November power battery production fell 5% MoM as the market focused on reducing inventories

November's power battery production hit 62.8 GWh, down 5% MoM and 9% YoY. Year-end sales of new energy vehicles rose slightly due to discounts and promotions, but growth lagged behind previous years. With dealers holding significant earlier inventory, market efforts centered on reducing this stock, minimally impacting new demand. Expecting slow Q1 2024 vehicle sales and facing high inventory, battery cell firms are reducing year-end stock. Predicting lower demand and inventory drawdown, battery cell production is set to dip further. December's power battery output may drop to 55.9 GWh, down 7% MoM and 2% YoY.