China’s new energy vehicle (NEV) market continued its robust growth in December, reaching a new record high in wholesale sales. According to a report by the China Passenger Car Association (CPCA), wholesale sales of passenger NEVs were estimated at 1.5 million units for the month. This figure represents a 35 percent increase year-over-year and a 5 percent rise from November’s sales. December marked the fifth consecutive month that China’s monthly NEV wholesale sales have exceeded one million units and the sixth time in history this milestone has been surpassed.
The CPCA noted that manufacturers with wholesale sales exceeding 10,000 units contributed 93.8 percent of all NEV wholesale sales in November. In December, these manufacturers were estimated to have sold 1.41 million units. Based on the sales structure from the previous month, the CPCA projected total passenger NEV wholesale sales to reach approximately 1.5 million units in December.
On the retail side, NEV penetration in China continued to exceed 50 percent during December, indicating strong consumer adoption of electric vehicles. In the Chinese market, NEVs include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles.
The CPCA highlighted that China’s auto market remained relatively buoyant in December, maintaining the momentum observed since the third quarter. Government trade-in subsidies played a significant role in bolstering sales figures. As of December 19, nearly 2.7 million applications had been submitted for subsidies to purchase new cars by scrapping old ones, and more than 3.1 million applications were received for subsidies through trade-ins, based on data from China’s Ministry of Commerce.
A majority of subsidy applicants opted to purchase NEVs, with the policy particularly supporting entry-level pure electric vehicles and PHEVs. The trade-in subsidy program, initiated at the end of April, was doubled at the end of July to further stimulate car consumption.
Among major automakers, BYD reported wholesale sales of 509,440 units in December. Geely achieved sales of 111,206 units, SAIC-GM-Wuling sold 102,570 units, Chery reached 97,100 units, and Tesla China recorded sales of 93,766 units.
Source: CnEVPost
