China is leading the world’s transition to clean energy, and one of the most notable areas of this change is the country’s roads.
Industry data for July shows that half of all vehicles sold in China in July were either new pure electric vehicles (EVs) or plug-in hybrids – a milestone that shows how far ahead the world’s largest auto market is of its Western counterparts in electric vehicle adoption.
Sales of so-called new energy vehicles (NEVs) rose 37 percent last month from the same period last year, accounting for a record 50.7 percent of auto sales, according to data from the China Passenger Car Association.
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This growth pace for NEVs accelerated from a 28.6% increase in June. Pure electric vehicle sales rose 14.3% in July, following 9.9% growth in June.
But overall, domestic auto sales fell 3.1%, marking the fourth consecutive month of decline. Consumer confidence weak while the economy is struggling to get going amid a continuing crisis in the real estate market.
Due to weakness in the auto market, China’s state planning administration announced in late July that cash subsidies for car purchases would be doubled – to up to 20,000 yuan ($2,785) per purchase – retroactively from April, when the subsidies were first introduced.
In addition, some cities that had restrictions on car purchases have taken measures to relax those restrictions.
For example, the capital Beijing announced last month that it would increase its registration quota for NEVs by 20,000, the first easing of restrictions since a strict quota system was introduced in 2011 to reduce traffic congestion and improve air quality.
- Reuters with additional editing by Jim Pollard
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