Sales of electric cars are booming around the world, in China it has even exploded: this year the country is predicted to sell 6 million electric vehicles. That prediction comes from the China Passenger Car Association, which recently increased its estimate from 5.5 million units. Sales of electric vehicles more than doubled to 486,000 in July, or about 27 percent for the new vehicle market.
You may notice that China refers to electrified vehicles rather than electric vehicles, and that’s because the data refers to what are known in China as “new energy vehicles” or NEVs. This group of vehicles includes battery-powered cars, plug-in hybrid electric vehicles and hydrogen fuel cell engines.
China only sold 2.99 million NEV in 2021, with the US selling just 608,000 BEV and hybrid cars in the same year, and that’s a 100 percent increase from the previous year’s figure. The predictions are impressive considering the auto industry has struggled due to semiconductor shortages and COVID-19 restrictions. Unlike other countries, China is still determined to eradicate the corona virus outbreak and the effects of the lockdown that have been implemented have made car manufacturers nervous, including Tesla.
But Bloomberg reports that national and local governments are implementing measures to help the industry bounce back, one of which is to halve the purchase tax for low-emissions cars.