The penetration rate of new energy vehicles (NEVs) in China is expected to reach a new high of 49.1 percent in June, signaling robust growth in the market amid increasing competition, according to an industry survey released on Thursday.
NEV manufacturers are optimistic about their targets for June, with retail sales projected to reach 860,000 units, marking a 6.9 percent increase compared to May. This data comes from the China Passenger Car Association (CPCA), which represents all domestic passenger car manufacturers.
To achieve the semi-annual targets, carmakers have launched various promotional and marketing activities. However, CPCA noted that strategies focusing on trading price for volume have shown limited impact on the overall market stimulation.
The NEV penetration rate measures the proportion of NEV sales relative to total vehicle sales within a specific period. China set an ambitious goal in 2020 to make NEVs mainstream, aiming for them to account for over 50 percent of total auto sales by 2035. Current projections suggest this goal might be met nine to ten years ahead of schedule.
The Chinese market is now entering a new commercialization phase, driven by technological innovations and shifting consumer preferences. Advances in battery and motor technologies have been pivotal in the electrification and widespread acceptance of NEVs.
Additionally, NEVs are enhancing the driving experience with intelligent technologies such as smart driving and generative artificial intelligence, offering a superior intelligent service experience.
Looking ahead, the NEV penetration rate in China is projected to approach nearly 70 percent by 2030. Chinese auto companies are also expected to rank among the top 10 global sellers, as highlighted in a report released at the China EV100 Forum 2024.
CPCA's preliminary estimates indicate that total retail sales of narrow passenger cars in June reached approximately 1.75 million units, reflecting a 2.3 percent month-on-month increase.
Reference(s):
China's NEV penetration rate to hit new high of 49.1% in June
cgtn.com
