Retail sales of new energy vehicles (NEVs) in China reached a record 1.302 million units in December, marking a 37.5% increase compared to the same period last year, according to the China Passenger Car Association (CPCA). Despite this growth, the market penetration of NEVs dropped below 50% for the first time since June, reflecting a slower pace of adoption relative to traditional gasoline vehicles.
Battery electric vehicles (BEVs) accounted for 58.5% of NEV sales, with 762,000 units sold in December, while plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs) combined for 541,000 units, showing a significant year-on-year increase of 55.9%. The decline in NEV penetration is attributed to faster growth in gasoline vehicle sales, spurred by trade-in policies.
NEV penetration varied across segments, reaching 71.3% for local brands, 33.9% for luxury brands, and 4.8% for joint venture brands. Wholesale NEV sales also hit a record of 1.512 million units in December, with penetration rates remaining under 50%.
Exports of NEVs totaled 122,000 units, representing a 21.5% year-on-year increase. BEVs dominated exports, contributing 62% of the total, with smaller A0- and A00-class BEVs accounting for a significant portion. While NEV adoption continues to rise, the December figures highlight shifting dynamics in the passenger car market, with gasoline vehicles gaining ground.
