In July 2024, new energy vehicles (NEVs), including pure electric vehicles (EVs) and plug-in hybrids, made up a record 50.7% of all vehicle sales in China, according to the China Passenger Car Association (CPCA). This marks a significant leap from 7% just three years ago, driven by substantial investments in EV supply chains and technological advancements.
Sales of NEVs surged 37% year-on-year, with pure EV sales climbing 14.3%, up from 9.9% growth in June. Local brands like BYD and Li Auto set new sales records, though overall car sales declined by 3.1% due to ongoing economic challenges and weak consumer confidence.
To support the struggling auto market, China’s state planning agency has doubled cash subsidies for vehicle purchases to 20,000 yuan ($2,785), retroactive to April. Additionally, Beijing has relaxed NEV license quotas, marking the first easing of restrictions since 2011.
Despite a competitive price war among domestic brands, with BYD offering discounts up to 17.3% on certain models, the market is expected to stabilize in the coming months. Vehicle exports rose 20% year-on-year, though the increase slowed from June’s 28%, as Chinese-made EVs prepare for potential EU tariffs.
Source: Reuters
