A news report from China indicates that NEVs are holding strong at more than 50% TIV.
China is the largest single vehicle market in the world, accounting for around a third of all new vehicle sales globally. It makes sense to pay attention to what’s happening in this market to understand which direction the world is going in terms of the car industry. The latest news from Global Times, a known CCP-affiliated news site indicates that New Energy Vehicle (NEV) sales in the country made up for more than 50% of all passenger car sales for 7 months straight.
The NEV category is one that China themselves helped to coin and popularise. It’s a blanket term that includes hybrid electric vehicles, plug-in hybrid electric vehicles, hydrogen fuel cell electric vehicles, battery electric vehicles, and range extender electric vehicles. So while some outlets may interpret this as pure EV adoption going through the roof in China, the reality is a bit more nuanced and includes a mix of hybrid types too.
That being said, the shift towards electrified vehicles is a significant one that shouldn’t be downplayed. All-in-all, over 11 million NEVs were sold in China last year according to the National Development and Reform Commission. Chinese consumers are willing to give ICE vehicles up in favour of more modern and efficient powertrain technology and that is a plus. Part of the reason for this is China’s aggressive trade-in programmes that are state-backed to some extent. These initiatives took 6.5 million older vehicles off the roads last year in exchange for about US$2,727 towards a replacement NEV.
The Chinese government aims to expand the trade-in program to include more recent ICE vehicles. Individual provinces are also doing their part by providing car purchasing vouchers using provincial resources. While China isn’t no.1 in EV adoption, it’s clear that they’re putting the necessary steps in place to move the entire nation in that direction. The same cannot be said of their chief rival, the United States. Wow, now we’re sounding a bit like a CCP mouthpiece as well!
