China's June 2023 Engine Exports for Motor Vehicles Experience Modest Decline, Reaching $131M

China Motor Vehicle Engine Exports

In June 2023, after three months of growth, there was significant decline in overseas shipments of motor vehicle engines (spark-ignition), when their volume decreased by -18.4% to 286K units. Over the period under review, exports showed a slight reduction. The most prominent rate of growth was recorded in January 2023 when exports increased by 36% m-o-m. Over the period under review, the exports hit record highs at 350K units in May 2023, and then dropped dramatically in the following month.

In value terms, motor vehicle engine exports contracted sharply to $131M (IndexBox estimates) in June 2023. In general, exports recorded a relatively flat trend pattern. The growth pace was the most rapid in March 2023 with an increase of 65% m-o-m. The exports peaked at 160M units in July 2022; however, from August 2022 to June 2023, the exports remained at a lower figure.

Exports by Country

Turkey (66K units) was the main destination for motor vehicle engine exports from China, with a 23% share of total exports. Moreover, motor vehicle engine exports to Turkey exceeded the volume sent to the second major destination, Iran (28K units), twofold. The United Arab Emirates (25K units) ranked third in terms of total exports with an 8.8% share.

From June 2022 to June 2023, the average monthly growth rate of volume to Turkey stood at +6.2%. Exports to the other major destinations recorded the following average monthly rates of exports growth: Iran (-1.5% per month) and the United Arab Emirates (+3.9% per month).

In value terms, Iran ($18M), the United Arab Emirates ($17M) and Turkey ($12M) constituted the largest markets for motor vehicle engine exported from China worldwide, with a combined 35% share of total exports.

Among the main countries of destination, Turkey, with a CAGR of +6.3%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Exports by Type

Engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 50cc but not exceeding 250cc (152K units) was the largest type of motor vehicle engine exported from China, with a 53% share of total exports. Moreover, engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 50cc but not exceeding 250cc exceeded the volume of the second product type, engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity not exceeding 50cc (63K units), twofold. Engines (57K units) ranked third in terms of total exports with a 20% share.

From June 2022 to June 2023, the average monthly rate of growth in terms of the volume of export of engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 50cc but not exceeding 250cc totaled -2.6%. With regard to the other exported products, the following average monthly rates of growth were recorded: engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity not exceeding 50cc (-1.4% per month) and engines (+1.2% per month).

In value terms, engines ($84M) remains the largest type of motor vehicle engine exported from China, comprising 64% of total exports. The second position in the ranking was held by engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 50cc but not exceeding 250cc ($28M), with a 22% share of total exports. It was followed by engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 250cc but not exceeding 1000cc, with a 9.1% share.

From June 2022 to June 2023, the average monthly growth rate of the export volume of engines was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 50cc but not exceeding 250cc (-2.2% per month) and engines; reciprocating piston engines, of a kind used for the propulsion of vehicles of chapter 87, of a cylinder capacity exceeding 250cc but not exceeding 1000cc (+0.9% per month).

Export Prices by Country

In June 2023, the motor vehicle engine price amounted to $460 per unit (FOB, China), rising by 2.9% against the previous month. Over the last twelve-month period, it increased at an average monthly rate of +1.5%. The growth pace was the most rapid in July 2022 an increase of 33% m-o-m. Over the period under review, the average export prices hit record highs at $596 per unit in March 2023; however, from April 2023 to June 2023, the export prices failed to regain momentum.

There were significant differences in the average prices for the major external markets. In June 2023, the country with the highest price was India ($1,556 per unit), while the average price for exports to Pakistan ($95.2 per unit) was amongst the lowest.

From June 2022 to June 2023, the most notable rate of growth in terms of prices was recorded for supplies to Russia (+5.1%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform