Retail sales of new energy vehicles (NEVs) in China reached a record high in October, totaling 1.196 million units, marking the third consecutive month of over one million units sold. This represents a 56.7 percent year-on-year increase and a 6.4 percent rise from September, according to the China Passenger Car Association (CPCA). However, the NEV penetration rate in retail sales saw a slight decline, driven by faster growth in gasoline vehicle sales.
Despite the record sales, the penetration rate for NEVs at retail stood at 52.9 percent, slightly down from 53.3 percent in September. This is the second consecutive month of sequential decline in NEV penetration, which had exceeded 53 percent earlier in the year. The dip in penetration can be attributed to a surge in gasoline vehicle sales, fueled by the government’s trade-in policy. “The increase in gasoline vehicle sales has contributed to a temporary slowdown in NEV penetration,” said the CPCA.
Battery electric vehicles (BEVs) remained the dominant segment within NEV sales, accounting for 56.3 percent of all NEV retail sales, or 673,000 units, up 36.7 percent year-on-year. Plug-in hybrid electric vehicles (PHEVs) saw the highest growth, with sales rising 107.7 percent year-on-year to 405,000 units, representing 33.9 percent of total NEV retail sales. Extended-range electric vehicles (EREVs) made up 9.8 percent of the retail sales, totaling 117,000 units.
China’s overall passenger car retail sales, including NEVs, reached 2.26 million units in October, up 11.3 percent year-on-year, with a 7.2 percent increase from September. Although NEVs accounted for a significant share, the overall retail sales growth for passenger cars outpaced the growth of NEVs, further contributing to the slight dip in penetration.
Wholesale sales of NEVs also set a new record in October, with 1.369 million units sold, up 55.2 percent year-on-year. The wholesale penetration rate for NEVs reached 50.1 percent, marking a new milestone for the industry, and up from 49.1 percent in September. In the export market, China shipped 120,000 passenger NEVs in October, contributing 27 percent of total passenger car exports, with BEVs accounting for 80.8 percent of NEV exports.
