China’s new energy vehicle market has experienced a surge in sales, reaching an all-time high of 238,000 units in 2022, a significant 90% increase from the previous year, according to an analysis by Shirly Zhu, principal analyst at Interact Analysis.
The new energy bus market made up 58% of total sales and totaled 138,000 units. Interestingly, small-sized buses experienced the highest growth rate, with a staggering 180% year-on-year increase to nearly 93,000 units in 2022.
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Ahead of the cancellation of national subsidies in January 2023, registration of new energy buses and trucks in December peaked at a total of 67,000 units, an increase of 121% year-on-year. Total registrations stood at 238,000 in 2022, accounting for 9.2% of total commercial vehicle registrations, up by 6 percentage points from 2021.
Although the subsidy has been withdrawn, the Chinese government will still support the new energy industry with favorable policies spanning purchasing tax exemption, right of way, subsidies for hydrogen vehicles, support for infrastructure construction, and more.
Battery-electric remained the dominant powertrain choice for new energy buses and trucks, accounting for 97% of total units. Sales of fuel cell vehicles increased by 155% to 4,782 units in 2022 due to an uptick in demonstration projects nationwide.
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“In 2023, new energy light-duty trucks and buses will retain the lead in terms of sales. Additionally, the fuel cell vehicle segment will remain robust in 2023 – with new projects rolling out in many regions,” Shirly Zhu writes.
While sales of new energy commercial vehicles are expected to take a hit during the first couple of months of 2023 due to the impact of the Chinese New Year holiday and the transition from policy-driven to market-driven sales, the market is expected to experience a gradual upward trend throughout the year, reaching around 300,000 units. These figures suggest that China’s new energy vehicle market is poised for continued growth and development.
