Half of all vehicles sold in China in July were either pure electric or plug-in hybrid, according to industry data. This milestone underscores how far ahead the world’s largest auto market is of its Western counterparts in the adoption of electric vehicles.
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, Reuters said, citing data from the China Passenger Car Association (CPCA).
Three years ago, electric vehicle (NEV) sales accounted for just 7% of total vehicle sales in China, but the country’s heavy investment in EV supply chains has fueled the growth of the domestic EV industry, leaving many established foreign brands struggling to catch up.
In contrast, the share of electric and hybrid vehicle sales in the United States in the first quarter of this year was only 18 percent, according to the research institute US Energy Information Administration.
The growth pace for NEVs in China has accelerated after a 28.6 percent increase in June. Sales of pure electric vehicles rose 14.3 percent in July, following a 9.9 percent increase in June, Reuters reported.
Solid growth in NEV sales enabled some local brands, including BYD and Li Auto, to set new monthly sales records in July.
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Overall, however, domestic auto sales fell 3.1 percent, continuing a fourth consecutive month of decline. Consumer confidence is weak as the economy struggles to get going amid a prolonged crisis in the housing market, Reuters reported.
A protracted price war that saw a flood of domestic brands competing with newer and cheaper models is also easing as automakers seek to protect their margins. CPCA Secretary-General Cui Dongshu expects further stabilization in August and September.
According to Reuters, vehicle exports rose 20 percent in July from the same period last year, compared with a 28 percent increase in June. Electric vehicles made in China are currently bracing for provisional EU tariffs, Cui said.
