China’s New Energy Vehicle (NEV) market continues to surge as sales of electric cars and plug-in hybrids experienced significant growth in May. The China Association of Automobile Manufacturers (CAAM) reported that approximately 717,000 NEVs were sold during the month, marking a noteworthy increase compared to previous months.
In April, 636,000 NEVs were sold, reflecting a 12.7% growth rate. May’s figures showcased an impressive 60% surge when compared to the same period in 2022, which saw sales of 421,000 NEVs. The market share of NEVs in total vehicle sales also rose from 29.5% in April to 30.1% in May. While these figures represent the highest market share and number of NEVs registered this year, they fall short of the sales achieved in parts of 2022 when purchase subsidies were still in effect.
Breaking down the data further, battery-electric vehicles (BEVs) accounted for around 522,000 units sold, while plug-in hybrids (PHEVs) reached 194,000 units. Year-on-year growth for BEVs and PHEVs stood at approximately 50% and 94% respectively. Fuel cell vehicle sales experienced a significant 311% increase compared to May 2022, albeit from a low base, with around 400 units sold.
In terms of overall vehicle sales in China, May witnessed the registration of 2.38 million new vehicles, marking a nearly 28% increase compared to the same period last year. Sales also grew by 10.3% compared to April, aligning closely with the average market growth. However, the growth rate of new energy vehicles, at 12.7%, outpaced the overall market.
Looking at the manufacturers, BYD emerged as the dominant player with 239,092 NEV sales, crossing the milestone of one million cumulative NEV sales for the year. BYD’s sales comprised 119,603 BEVs and 119,489 PHEVs, including both passenger cars and commercial vehicles. Notably, BYD exported 10,203 NEVs in May. Tesla secured the second spot with 77,695 BEVs sold, although the number includes undisclosed exports. GAC Aion claimed the third position, achieving a record-breaking 45,003 BEV sales and demonstrating considerable growth in China.
Other Chinese EV start-ups also made their mark in May. Great Wall Motor held its ground in fourth place with 23,755 NEV sales, while Leapmotor recorded impressive five-digit sales of 12,058 BEVs. Geely’s brand Zeekr expanded its BEV sales to 8,678 units with the introduction of two models, and production of a third model has recently commenced. Xpeng and Nio, two internationally recognized companies, fell short of the 10,000 mark, with Xpeng selling 7,506 BEVs and Nio selling 6,155 BEVs. It’s worth noting that Nio’s production of certain models has temporarily halted as they undergo a transition from the NT1.0 to the NT2.0 platform.
The Chinese NEV market’s shift towards BEVs is partly attributed to an increasing number of NEV manufacturers exclusively offering battery-electric cars. The impressive sales figures from established and emerging players indicate the continued growth and competitiveness of China’s electric vehicle industry.