Morning bites (part 2)

🚘CAAM has cut its FY22 China domestic car sales outlook by 2.5% to 26.8 mn vehicles, amid the economic downturn, COVID and declining demand from end-users. However, the figure would be still up ~2.0% YoY, which is slightly below our estimates, and implies a decrease of some 10% YoY in December (vs. the 8% YoY decline in November). The China Association of Automobile Manufacturers (CAAM) expects car sales to reach 27.6 mn units in 2023 (+3.0% YoY), but states that the industry needs stimulus measures – some of which expire this year. In our view, 2022 sales are likely to have already been priced-in by the market, given the proximity of the year end. At the same time, potentially higher sales in 2023 imply some support for PGMs prices, as China’s auto sector accounts for ~26% and 17% of global autocatalyst Pd and Pt demand, respectively

#cars #EV #PGMs
https://metals-wire.com:3000/news-reports