NEV sales in China reach record high

NEV sales in China reach record high

Sales of new energy vehicles in China hit a new record of 571,000 in June, up 150,000 from May 2022 for these passenger cars (BEV, PHEV and FCEV cumulatively).

The previous best of 505,000 New Energy Vehicles came in December 2021 - so the mark has been significantly surpassed. The best month so far in 2022 was March with 455,000 units.

Compared to June 2021 (234,000 NEVs), the 571,000 sales represent an increase of 142.4 percent, and compared to May 2022, it is still an increase of 35.3 percent, according to figures released by the China Passenger Car Association (CPCA). The association said the growth exceeded expectations.

One of the backgrounds: Since June, the Chinese government has exempted New Energy Vehicles from the purchase tax and reduced the purchase tax for cars with combustion engines with less than two liters of engine capacity from ten to five percent in order to drive economic growth. Compared to May or the same month last year, there is therefore a certain distortion.

In the current year, NEV sales total 2.467 million vehicles, up 122.9 percent from the first half of 2021.

Of the 571,000 NEVs, 79 percent were battery-electric vehicles - accounting for 452,000 units. Among plug-in hybrids, 119,000 vehicles were sold wholesale, bringing the NEV share of all new registrations in June to 26.1 percent, up 10.8 percentage points from 15.3 percent in June 2021.