Wang Chuanfu, chairman and president of BYD, predicts that China will achieve a significant milestone this year, with new energy vehicles (NEVs) accounting for half of the country’s single-month vehicle sales. This comes after NEVs surpassed 40 percent of total vehicle sales for the first time late last year.
Speaking at a conference held by the Guangdong provincial government, Wang highlighted the rapid growth of NEV penetration in China, which has doubled since 2020, reaching 35 percent in 2023. He expects this trend to continue, with monthly NEV penetration exceeding 50 percent at some point this year.
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In 2023, China’s retail sales of NEVs reached 7,736,000 units, accounting for 35.7 percent of all passenger car retail sales, according to the China Passenger Car Association (CPCA). NEV penetration at the retail level surpassed 40 percent in both November and December 2023.
However, in January 2024, NEV sales dipped along with China’s overall auto sales, resulting in a lower penetration rate of 32.8 percent for the month.
As China’s largest NEV maker, BYD has played a significant role in driving the country’s electrification efforts. The company sold 2,706,075 NEVs in 2023, capturing 35 percent of the Chinese NEV market, according to CPCA data.
BYD made a strategic decision to cease production and sales of vehicles powered solely by internal combustion engines in March 2022, focusing instead on plug-in hybrids (PHEVs) and battery electric vehicles (BEVs).
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Looking ahead, Wang emphasized that the automotive industry is undergoing profound changes, with electrification driving rapid transformation and the integration of intelligence gaining momentum. He emphasized that the development of NEVs will only accelerate, creating new challenges and opportunities for the industry.
Wang also noted the changing landscape of the luxury car market, where electrification and intelligence have opened up new possibilities for local brands to enter the premium segment. He highlighted the increasing market share of Chinese brands, which rose from 38 percent in 2020 to 56 percent in 2023, signaling a shift in the competitive dynamics of the domestic market.