China: NEV sales rise significantly in August

China: NEV sales rise significantly in August

632,000 new-energy passenger cars were sold in China in August, more than in any previous month. Battery-electric passenger cars continue to account for the vast majority of NEV sales in China, with 490,000 new BEVs in August compared to 142,000 PHEVs.

For the first time, the statistics curve for monthly sales of new energy passenger cars - i.e. BEVs, PHEVs and FCEVs - in China rises above the 600,000 mark. Remarkable above all because August tends to be a weak sales month for the automotive industry in the Middle Kingdom, and only three times before it even went over the 500,000 threshold (in December 2021 and in June and July 2022).

Compared with July 2022, 632,000 e-cars sold represent an increase of about 12 percent, and year-on-year sales of NEV passenger cars more than doubled (+108%), with August 2021's 304,000 NEV vehicles sold considered a record at the time. In the current 2022, wholesale sales of new energy vehicles in China now total 3.662 million units, up 119 percent year-on-year.

Battery-powered electric vehicles continued to account for the largest share of NEV sales in August, with 490,000 units sold, representing just over three-quarters (77.5 percent) of all NEV sales. Plug-in hybrids accounted for 142,000 units last month, while fuel cell vehicles continue to come in at very low volumes. A look at overall passenger car sales shows that NEVs continued to grow as a share of the overall market in China in August, with wholesale sales totaling 2.097 million passenger car units, meaning NEVs accounted for 30.1 percent of sales last month.

The China Passenger Car Association (CPCA), which publishes the sales figures, points out that this is the first time the figure has climbed above the 30 percent mark, and attributes the rising NEV sales to incentives from China's local governments and the continued increase in production by major OEMs in China.

According to the CPCA, local brands continue to lead NEV sales with 49.8 percent in August, while luxury brands account for 29.4 percent and joint venture brands only 4.9 percent.