Thanks in no small part to the runaway success of vehicles like the Tesla Model 3, Model Y, and other notable electric cars from ventures like SAIC-GM-Wuling, China’s EVs are on track to reach the country’s 20% nationwide penetration goal this 2022. This is very impressive, as it is well ahead of the government’s forecast, which estimated that the 20% mark would be attained around 2025.
New Energy Vehicles (NEVs) saw a notable rise in popularity in recent months, with sales more than doubling in November and December. This momentum helped China’s NEV deliveries achieve a 169% rise, as per data from the China Passenger Car Association (CPCA). Cui Dongshu, general secretary of the vehicle industry, noted that the sales growth of NEVs outpaced those of their internal combustion-powered counterparts.
“Sales growth by NEVs largely outpaced internal combustion engine-driven (ICE) cars, suggesting that NEVs will continue to replace oil-guzzlers at a quick pace,” the general secretary said, according to a South China Morning Post report.
Monthly EV sales in the country broke the 20% mark for the first time in November 2021 when electric vehicle deliveries saw a 122.3% year-over-year increase. December deliveries were even better with their 138.9% rise, which was equal to 22.6% of the country’s total vehicle sales.
China is the world’s largest auto market, and it is also the home of the world’s largest EV segment. Over 200 companies produce and supply NEVs to China’s domestic auto segment, though monthly sales have so far been dominated by a small group of companies. These elite few are mainly comprised of American EV maker Tesla, which produces the popular Model 3 and Model Y, BYD, SAIC-GM-Wuling, which produces the best-selling Wuling Hongguang Mini EV, as well as NIO, Xpeng Motors, and Li Auto.
Tesla has so far seen immense success with its Model 3 sedan and Model Y crossover. In December alone, Tesla sold a total of 70,602 electric cars in China’s domestic market. The Tesla Model Y also took the crown as China’s best-selling premium SUV, both in December and 2021 as a whole. Considering that China saw 505,000 NEV deliveries in December, Tesla’s domestic sales of 70,602 units during the month were particularly impressive.
Cao Hua, a partner at private equity firm Unity Asset Management, has noted that China’s NEV sales would likely see even more momentum this year. “Beijing’s efforts to encourage purchases of green cars have paid off, and the upward momentum will pick up pace in 2022. The consensus forecast is that NEV sales could double last year’s number in 2022,” Cao noted.
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