China’s new energy vehicle (NEV) market in December saw a significant surge in sales, reaching a new record high. According to the China Passenger Car Association (CPCA), wholesale sales of passenger NEVs in China were estimated at 1.5 million units last month, marking a 35 percent increase compared to the same period last year and a 5 percent increase from November.
This milestone represents the fifth consecutive month that China’s monthly NEV wholesale sales have surpassed 1 million units, a trend that underscores the growing popularity and adoption of electric vehicles in the country. The CPCA also noted that in November, manufacturers with wholesale sales exceeding 10,000 units of passenger NEVs accounted for 93.8 percent of all NEV wholesale sales for the month.
The strong performance in December was attributed to the continued support from the trade-in subsidy program, which has been instrumental in driving consumer demand for new vehicles. As of December 19, there were nearly 2.7 million applications for subsidies to purchase new cars by scrapping old ones, and over 3.1 million applications for subsidies to buy new cars through trade-ins, according to data from China’s Ministry of Commerce.
The policy has been particularly favorable for entry-level pure electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), with most subsidy applicants opting to purchase NEVs. This has contributed to the overall growth and success of the NEV market in China.
In terms of retail, NEV penetration exceeded 50 percent in December, indicating a strong consumer interest and preference for electric vehicles. The exact breakdown of NEV sales by type, including battery electric vehicles, PHEVs, and fuel cell vehicles, is expected to be released later this month.
Among the major automakers, companies such as BYD, Geely, SAIC-GM-Wuling, Chery, and Tesla China posted impressive sales figures in December. BYD sold 509,440 wholesale units, while Geely sold 111,206 units, SAIC-GM-Wuling sold 102,570 units, Chery sold 97,100 units, and Tesla China sold 93,766 units.
Overall, China’s NEV market continues to thrive, fueled by government incentives, consumer demand, and technological advancements in the electric vehicle sector. The industry is poised for further growth and innovation as more automakers invest in developing sustainable and eco-friendly transportation solutions.
