The penetration rate of new energy vehicles (NEVs) in China is expected to reach a new high of 49.1% in June, reflecting the market’s steady growth amidst increasing competition, according to an industry survey.
The China Passenger Car Association (CPCA), which covers all domestic passenger car manufacturers, reported that NEV manufacturers are optimistic about June, with retail sales projected to reach 860,000 units, a 6.9% increase compared to May.
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Carmakers have engaged in various promotional and marketing activities to achieve their semi-annual targets, the CPCA noted, adding that the strategy of trading price for volume has had a limited stimulating effect on the overall market.
The NEV penetration rate refers to the proportion of NEV sales in the total vehicle sales within a certain period. China set a goal in 2020 for NEVs to account for more than 50% of total auto sales by 2035, a target that now seems likely to be achieved ahead of schedule.
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The Chinese market has entered a new phase of commercialization driven by technology innovation and evolving consumer preferences. The rapid development of the NEV industry is closely linked to continuous advancements in batteries and motors, contributing to the electrification and popularization of NEVs.
With advanced technologies such as intelligent driving and generative artificial intelligence (AI), NEVs offer a superior intelligent service experience.
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A report released at the China EV100 Forum 2024 predicts that NEV penetration in China will nearly reach 70% by 2030, with Chinese auto companies likely to rank among the top ten global sellers.
Preliminary estimates from the CPCA suggest that total retail sales of narrow passenger cars in June will be about 1.75 million units, a 2.3% month-on-month increase.