Hybrids and EVs Capture More Than 50% of China’s Auto Market for the First Time in July

The surge in the electric vehicle (EV) market in China is widely regarded as the result of a deliberate government policy that subsidized not only manufacturers of such vehicles but also consumers. Even in uncertain economic conditions, New Energy Vehicles (NEVs) continue to expand in China, with their market share surpassing 50% for the first time in July.

This information comes from CnEVPost, citing the China Passenger Car Association (CPCA). In July, hybrids and electric vehicles accounted for 51.1% of the primary car market in China. Essentially, vehicles powered solely by internal combustion engines (ICE) were in the minority among those sold on the Chinese market last month. In numerical terms, 878,000 hybrids and battery electric vehicles were sold in China in July, second only to the record set in December of last year, when sales reached 947,347 units. The year-over-year sales growth of hybrids and electric vehicles reached 36.9%, with a sequential increase of 2.8%.

The term NEV, as used by Chinese statistics authorities, includes not only hybrids with internal combustion engines and battery electric vehicles but also hydrogen fuel cell vehicles, though their sales volumes are negligible. In July, 54.8% of NEV sales in China were battery electric vehicles, amounting to 482,000 units. This represents a 14.3% increase from the previous year, although it is a 1.6% decrease from June.

The robust growth in NEV sales can largely be attributed to plug-in hybrids, with 396,000 units sold in July. This marks an 80.4% increase from July of the previous year, with a sequential growth of 8.8%. Plug-in hybrids accounted for 45.1% of NEV sales in China in July. The statistics do not break down hybrids by subtype, though they also vary by powertrain configuration.

In terms of the overall dynamics of passenger vehicle sales in China in July, a total of 1.72 million crossovers, sedans, and minivans were sold, representing a 2.8% decrease compared to the same period last year, and a sequential decline of 2.6%. Returning to the NEV category, their market share in China was only 36.1% in July of last year, and 48.4% in June of this year.

Among Chinese manufacturers, NEVs accounted for an impressive 73.9% of sales in July, while in the luxury segment overall, the figure did not exceed 27%. Foreign automakers with joint ventures in China offered hybrids and electric vehicles in only 8.3% of cases in July. NEV exports from China in July increased by 1.3% year-over-year to 92,000 units, with a sequential growth of 18.2%. Overall, nearly one in four new vehicles exported from China in July was either a hybrid or an electric vehicle, with the latter accounting for 72.7% of exports in July.