Retail sales of new energy vehicles (NEVs) in China hit a new high in October, marking the third consecutive month with over 1 million units sold. This surge represents a 56.7 percent increase compared to the same period last year and a 6.4 percent increase from September, according to data from the China Passenger Car Association (CPCA).
In October, passenger NEV sales in China totaled 1.196 million units, with battery electric vehicles (BEVs) accounting for 56.3 percent of all NEV sales at 673,000 units. Additionally, plug-in hybrid electric vehicles (PHEVs) excluding extended-range electric vehicles (EREVs) made up 33.9 percent of NEV sales, while EREVs contributed 9.8 percent.
The overall sequential growth rate of China’s passenger car sales exceeded that of NEVs in October, with passenger car retail reaching 2.26 million units, up 11.3 percent year-on-year and 7.2 percent from September.
Despite the record-breaking NEV sales, the penetration rate of NEVs at retail slightly declined to 52.9 percent in October. This decrease may be attributed to the faster growth in gasoline vehicle sales, driven by government trade-in policies.
In terms of market penetration, local Chinese NEVs dominated wholesale sales, accounting for 65 percent of the market share. Luxury brands held 35 percent, while mainstream joint venture (JV) brands represented 6 percent.
On the export front, China exported 120,000 passenger NEVs in October, marking a 10.4 percent increase from the previous year. BEVs accounted for 80.8 percent of NEV exports, with A0 and A00 class BEVs making up 46 percent of total exports.
Tesla, a prominent player in the NEV market, sold 40,485 cars in China in October and exported 27,795 vehicles from its Shanghai plant. This highlights the growing demand for NEVs both domestically and internationally.
Overall, the NEV market in China continues to show strong growth, with record sales figures and increasing export volumes. As the industry evolves, it will be interesting to see how market dynamics shape the future of electric vehicles in the country.
