China has seen new energy vehicles surpass traditional fuel-powered cars in monthly sales for the first time.
(Data as per the China Passenger Car Association’s July 2024).
New energy vehicles, comprising solely battery-operated and hybrid-powered cars, represented 51% of China’s new passenger car sales as registered in July 2024 as reported by China Passenger Car Association.
This marks an increase from a 36% market share the same time in 2023, and a rebound from just under one-third in January 2024.
Report accuracy
The accuracy of the association’s data has previously faced scrutiny. July’s report revealed that battery-only vehicles had higher sales than hybrids, achieving a 28% market share.
But sales and delivery reports from companies like BYD suggest a growing consumer preference for hybrid vehicles in China which sits in line with the China Passenger Car Association data.
As the largest global automobile market, China has experienced a slowdown in overall economic growth, leading to strong competition and a price war within the new energy vehicle sector.
Policy
For over ten years, the Chinese government has ‘supported’ the local new energy vehicle industry with subsidies and beneficial policies. The most recent trade-in initiative aimed at stimulating consumption has particularly encouraged the purchase of new energy vehicles.