In a recent statement, Ouyang Minggao, an academician of the Chinese Academy of Sciences, predicted a significant rise in the popularity of New Energy Vehicles (NEVs) in China. He anticipates NEVs to account for 40 percent of total new car sales in 2024 and approximately 50 percent by 2025.
Last year, NEV sales in China reached 9.49 million units, comprising 31.6 percent of new vehicle sales, according to the China Association of Automobile Manufacturers.
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Ouyang, who also serves as vice-president of the China EV 100, projects that by 2030, NEVs will represent 70 percent of new vehicle sales in China, with annual sales reaching around 20 million units. He emphasized that electrification has streamlined vehicle production, intensifying competition, and highlighted the increasing importance of smart functions for carmakers to distinguish themselves in the market.
Globally, NEV sales are forecasted to hit 40 million units by 2030, constituting half of total passenger vehicle sales, according to Zhang Yongwei, vice-president and secretary-general of the China EV 100. However, Zhang noted that demand for NEVs will vary across regions.
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While Chinese consumers are increasingly interested in smart features, customers in other regions such as Europe and the United States are more concerned about vehicle range per charge.
Guan Mingyu, a partner at McKinsey, added that with their early entry into the market and rapid innovation, Chinese carmakers are poised to capture “several” positions on the list of the world’s top 10 carmakers by 2030. This shift reflects the global automotive market’s move towards electrification.
