China’s new energy vehicle (NEV) market saw some fluctuations in February, with overall retail sales of passenger NEVs totaling 686,000 units. This represented a 79.7 percent increase compared to the same period last year, but a slight decrease of 7.8 percent from January’s figures. The China Passenger Car Association (CPCA) released these statistics, which were slightly lower than their initial estimates but higher than a previous estimate.
One of the key drivers of the year-on-year growth in February was the timing of the Chinese New Year holiday. Last year, the holiday fell entirely in February, while this year it straddled January and February. Retail sales of battery electric vehicles (BEVs) showed a significant increase, totaling 427,000 units, marking a 94.4 percent year-on-year growth and a 1.7 percent increase from January.
BEVs accounted for 62.2 percent of all NEV retail sales in February, up from 57.8 percent in January. Plug-in hybrid electric vehicles (PHEVs) excluding extended-range electric vehicles (EREVs) also saw growth, with 199,000 units sold at retail, an 83.4 percent increase year-on-year. However, sales were down 20.2 percent from January. Retail sales of EREVs reached 60,000 units, contributing 8.7 percent of NEV retail sales.
In terms of overall passenger car sales, including sedans, SUVs, and MPVs, China saw a 26.0 percent year-on-year increase in February, totaling 1,386,000 units. However, this figure was 22.8 percent lower than January’s sales.
The penetration rate of NEVs at retail reached 49.5 percent in February, marking a 15 percentage point increase from the previous year and an 8 percentage point increase from January. Local brands dominated the market, with a 70 percent penetration rate, followed by luxury brands at 23 percent and mainstream joint venture (JV) brands at 4 percent.
Wholesale sales of passenger NEVs in February reached 830,000 units, showing a 79.6 percent year-on-year increase but a 6.7 percent decrease from January. The penetration rate of NEVs at wholesale stood at 47.0 percent in February, up 12 percentage points from the previous year and 4.7 percentage points from January.
In terms of exports, China exported 118,000 passenger NEVs in February, a 27.8 percent increase year-on-year. BEVs accounted for 59 percent of these exports, with class A0 and A00 BEVs making up 50 percent of the total NEV exports.
Overall, the NEV market in China continues to show growth and resilience, with BEVs leading the way in retail sales and exports. The market dynamics are influenced by various factors, including government policies, consumer preferences, and global trends in the automotive industry.
