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China Recalls Record 1.603 Million New Energy Vehicles in 2023, Marking a 32.3% Yearly Increase

The development of new energy vehicles in mainland China has attracted significant attention. However, according to a notice released by the State Administration for Market Regulation’s official website on Wednesday (the 13th), in 2023, the mainland recalled 1.603 million new energy vehicles, accounting for 23.8% of the total number of recalls for the year, representing a 32.3% increase and setting a historical record.

According to the “Notice on the Recall of National Automobiles and Consumer Goods in 2023,” a total of 214 automobile recalls were implemented in the mainland in 2023, involving 6.728 million vehicles, increases of 4.9% and 49.9% respectively compared to the previous year. Among them, there were 72 recalls of new energy vehicles, involving 1.603 million vehicles, accounting for 23.8% of the total recalls for the year. The number of recalls for new energy vehicles increased by 32.3%, reaching a historical high.

On the other hand, in 2023, the State Administration for Market Regulation received a total of 23,200 reports of consumer-provided clues about automobile defects, with 5,216 related to new energy vehicles, accounting for 24.9% of the total. These reports reflected issues with power batteries, electric motors, and electronic control systems, which accounted for 24.9% and driver assistance system issues accounted for 5%. Engines and electrical equipment were the main components causing defects, accounting for 84.9% of the total automobile recalls in 2023. There were 81 recalls due to engine defects and 54 recalls due to electrical equipment defects, involving 4.053 million and 1.663 million vehicles respectively. Design-related recalls remained the primary reason for defects, involving 4.355 million vehicles. However, the number of recalls due to manufacturing reasons increased by 37.3% compared to the previous year, involving 2.373 million vehicles.

The notice pointed out that online software updates (OTA) are gradually becoming an important method for implementing automobile recalls in China. In 2023, OTA recalls were implemented 6 times, involving 1.173 million vehicles, a significant increase of 32.2% compared to 2022.

According to data from the China Association of Automobile Manufacturers, mainland China’s automobile sales reached 30.094 million vehicles in 2023, a year-on-year increase of 12%. Among them, sales of new energy vehicles reached 9.495 million vehicles, an increase of 37.9%, and the market share rose to 31.6%.

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