China’s NEV production surges 29% year-on-year to 1.02m units in January

China’s new energy vehicles (NEVs) performed strongly, with production surging 29 per cent year-on-year to 1.02 million units in January, industry data showed.

China Daily quoted the China Association of Automobile Manufacturers (CAAM) as saying that NEV sales grew rapidly by 29.4 per cent year-on-year to 944,000 units in January - accounting for 38.9 per cent of total new vehicle sales last month.

China’s auto industry witnessed a steady start to the year, with both passenger car production and sales posting year-on-year increases in January.

Total passenger car output reached 2.15 million units last month, up 3.3 per cent year-on-year, while sales grew 0.8 per cent year-on-year to top 2.13 million units.

China’s auto exports rose 6.1 per cent year-on-year last month, totalling 470,000 units in January.

China’s auto sector hit a new milestone in 2024 with both production and sales exceeding 31 million units, according to data released by the China Association of Automobile Manufacturers on Monday.

According to China Central Television (CCTV), China produced over 31.28 million automobiles last year, representing a year-on-year increase of 3.7 per cent. Meanwhile, car sales rose by 4.5 per cent, reaching nearly 31.44 million units, as indicated by the data.

The data also revealed that both production and sales of new energy vehicles (NEVs) exceeded 12 million units, ranking first in the world for 10 consecutive years.

Experts have predicted that China’s auto sales will reach around 32.9 million units in 2025, with the sales of NEVs estimated at 16 million units.

The production and sales of new energy vehicles (NEVs) in China increased by more than 30 per cent year-on-year from January to November 2024, with sales of NEVs making up more than 40 per cent of total automobile sales for the first time, latest data showed.

According to China Central Television (CCTV), during the period from January to November, the production and sales of New Energy Vehicles (NEVs) in China reached 11.345 million units and 11.262 million units, respectively, representing an increase of 34.6 per cent and 35.6 per cent.

NEV sales accounted for 40.3 per cent of the total automobile sales, as reported by the China Association of Automobile Manufacturers.

National NEV production surged 45.8 per cent year-on-year to nearly 1.57 million units in November, and NEV sales climbed by 47.4 per cent to 1.51 million units.

NEV sales accounted for 45.6 per cent of the total sales of new cars in November alone.

“In November, the NEV sector continued to grow rapidly, with monthly production and sales both exceeding 1.5 million units. From January to November, cumulative sales surpassed 40 per cent of total automobile sales for the first time, playing a significant role in supporting overall sales growth,” said Chen Shihua, Deputy Secretary-General of the association.

China’s production and sales of new energy vehicles (NEVs) continued to maintain fast growth in the first eight months of 2024, with the NEV market share steadily increasing in the domestic market, Xinhua News Agency reported, citing official data.

From January to August 2024, the production of NEVs reached about 7.01 million units, rising 29 per cent year-on-year, data from the China Association of Automobile Manufacturers (CAAM) showed.

The sales of NEVs stood at 7.04 million units, growing by 30.9 per cent from a year earlier, the data revealed. The market share of NEVs in China reached 37.5 per cent in the period.

In the January-August period, some 818,000 units of NEVs were exported, representing a year-on-year increase of 12.6 per cent.

The competition in China’s New-Energy Vehicle (NEV) industry has intensified as both local and international brands rush to announce price cuts and release new models to capture a larger share of the market, according to Global Times. Industry analysts said that the fierce competition comes amid the transition of China’s NEV sector from a period of a large number of investments to a mature market, and the entire market will be further concentrated on a couple of leading firms.

In April 2024 alone, more than 10 NEV brands announced price cuts or promotional activities. Chinese automaker Li Auto reduced prices by about 5 per cent on four of its models and offered refunds to owners who purchased those models earlier this year. US automaker Tesla also trimmed prices on its Model 3 and Model Y vehicles. China’s vehicle market experienced a strong start in the first quarter of 2024, with NEVs maintaining a market share above 30 per cent.