China: NEV sales pick up significantly

China: NEV sales pick up significantly

Sales of new energy vehicles in China increased by around 50 percent in May compared to April, to 421,000 units. After a weak April, the Chinese market was able to return to the growth trend with the second-best monthly result of the year.

At 280,000 units, NEV sales were unusually low in April, likely due in part to the Corona lockdowns around Shanghai - not only was there less production, but showrooms were closed for weeks. The year-over-year growth is even more pronounced when compared to April: at 198,000 NEVs sold in May 2021, what growth is there is 111.5 percent. By comparison, the overall market in China declined 1.3 percent year-over-year in May to 1.59 million units.

According to the China Passenger Car Association (CPCA), which collects the sales data, the May figures are also still heavily influenced by the pandemic, but the improvement over May 2021 has exceeded expectations. However, the CPCA also points out that supply chain issues are now increasingly affecting NEVs, which has led to delays, some of them significant.

This means that 1.89 million NEVs have already been sold from January to May, a figure 117.4 per cent higher than the same period in 2021. 1.71 million units of these were NEV passenger cars, with the remainder being commercial vehicles. The NEV share in May was therefore 26.5 per cent, compared with 12.4 per cent in May 2021.