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Half of all the cars sold in China this July were EV or plug-in hybrid models, according to data from the China Passenger Car Association (CPCA).
The figures indicated that “new energy vehicles” (NEVs) represented 50.7% of sales last month, a 37% spike compared to a year earlier. That was larger than the 28.6% climb in June, the CPCA said.
Reuters noted that some major EV brands in China set sales records in July, including heavyweight BYD as well as Li Auto. This was helped in part by discounts as part of an effort to compete with other local car manufacturers introducing cheap models, although BYD has scaled back its promos.
The surge is a stark contrast to the US, where EVs and hybrids accounted for just 18% of car sales in the first quarter of 2024. Although pure electric cars are still gaining ground in the country, the relatively slow growth has led some automakers to shift their attention to hybrids and rethink their targets for transitioning to all-EV lineups.
The change in the Chinese car market shows both how EVs have caught on in the country as well as how its government frequently influences sales. Officials have routinely incentivized or otherwise steered EV sales. In July, for example, Beijing raised its NEV license quota by 20,000 (the first loosening of the quota in its 13-year history).
The results were partly undermined by an overall car sales drop of 3.1%, continuing months of shortfalls as the Chinese economy had trouble taking off.
However, it also explains why other nations are either implementing tariffs for Chinese EVs or considering them. BYD, Geely, and other major names are expanding internationally thanks in part to their strength at home. The US, UK, and European Union are concerned that China might flood their EV markets with heavily subsidized cars, and want to eliminate what they see as an unfair price advantage.
