Electric surge: China's NEV sales hit a record 11 million
The Chinese Passenger Car Association (CPCA) reported on Thursday that the sales of electric and hybrid vehicles (NEVs) in China increased by 40.7% year over year in 2024, reaching a record level of nearly 11 million units.
According to CPCA data, in 2024, the total sales of passenger cars rose by 5.3% year-on-year, reaching 23.1 million units. Thus, 2024 was the fourth consecutive year of growth.
CPCA also reported that 47.7% of the new cars that hit Chinese roads in 2024 were 10,899,000 hybrid and electric vehicles. From August to December inclusively, in each month, the sales of these types of cars exceeded 1 million units.
Nearly 30% (over 6.6 million) of all new cars sold in China in 2024 were covered by government subsidies. Of this number, more than 60% were electric and hybrid cars. The Chinese government subsidizes the purchase of such vehicles up to $3,800 CAD; in the case of gas-powered cars, the subsidy is up to $2,700 CAD.
- Additionally, in 2024 manufacturers reduced the prices of a total of 200 electric and hybrid car models - noted CPCA's Secretary General, Cui Dongshu. The association's data also shows that another record year in terms of car sales, including the NEV segment, did not translate into greater profits for manufacturers.
Reuters points out that since 2020, the Chinese automotive industry has been consistently experiencing a decline in profitability. CPCA also predicts that the price war will not ease in 2025.
