Plug-in electric vehicle sales in China which are referred to as New Energy Vehicles (NEV) are extremely strong this year.
The results are so impressive they have there is a reason that the China Passenger Car Association (CPCA) has recently revised its 2022 projections up from 5.5 million cars for passenger use to 6 millions passenger vehicles (plus commercial vehicles to add on).
According to CPCA In July, retail sales for electric passenger vehicles rose by 129% year-over year to 564,000, which included 428,000 all-electric and 136,000 hybrids that plug in. Retail sales increased in July by 117% over the previous year to 486,000.
In the first seven months of 2022, retail sales total of NEVs were up 121%, reaching 2.7 million. This is close to 3 million units recorded in the twelve years of 2021.
With just five months left with more than half of a million units of goods sold each month, six million seems to be more than just possible , but also slightly prudent. Particularly because the last few months of the year tend to be the most prosperous in China. We are not too expect to be surprised if the number of units rise to 1 million units per month in the coming twelve months.
It’s important to note that in Julyof this year, NEV percent of all Chinese car market was over 26 percent (both the retail as well as wholesale).
China is evidently growing, with a variety of new models coming on the market. But, if the penetration rate is higher than 25% of the total market at present growth could slow down over the next year or two years from now.
For Chinese producers, it’s an extremely crucial moment. If they are going to continue growing at the rate they are there is no other option to expand their business beyond China (which many of them already do). The only markets that can be considered plug-ins significant enough to make a difference over the next few years will be Europe in addition to North America.
It’s important to pay attention, especially the BYD report, which lists over 162,000 electric plug-in vehicle sales, with more than 4000 exported, which is the most month-long sales that we’ve seen to date (after more than 2,000 in the month of May, previously the record).