Due to the effects of the global chip supply shortage, the automotive market in China appears to be declining, but the performance of the new energy vehicle market is improving remarkably. According to a recent report by China's Ministry of Industry and Informatics, new-energy vehicle sales in China have exceeded 1 million for the past three years, and China has been the world leader in new-energy vehicle sales for six years.
According to the data released by the China Automobile Consumers Association, in July, the production of new energy vehicles reached 284 and sales reached 271. In the first seven months of the year, the production of new energy vehicles reached 1 million 504 thousand and the sales reached 1 million 478 thousand. In both areas, a new record was set, surpassing last year's total.
The entry of the US automotive giant Tesla into the Chinese market created great competition in the sector and accelerated the development of local brands. Local brands such as NIO and BYD have come to the fore with innovations in their technologies and sales models. BYD is in fourth place and NIO is in ninth place in the list of market values of global automobile companies that has been announced recently. Investors' optimistic approach to China's new energy vehicle market also kept the prices of related stocks in the long-term high in the Chinese stock market.
On the other hand, the demands of Chinese consumers for new energy vehicles have been increasing in recent years. China has been the world's largest new energy vehicle market since 2015. Behind this performance lies both the increase in environmental protection activities and the government's incentive policies.
It will grow 40 percent every year
China has committed to peak carbon emissions by 2030 and to be carbon neutral by 2060. In order to fulfill this commitment, the Chinese government is implementing many incentive measures to accelerate the development of the new energy vehicle industry.
Gao Feng, spokesman for China's Ministry of Commerce, stated that more convenience will be provided for the use of new energy vehicles, such as loosening restrictions on the license plates of new energy vehicles, speeding up the construction of charging stations and increasing parking spaces. The spokesperson stated that the sales of new energy vehicles in China are expected to increase continuously and the market share is expected to increase gradually.
According to the data, the number of charging stations built in 176 cities in China exceeded 1 million 870 thousand as of April. Average annual growth in sales of new energy vehicles is estimated to be over 40 percent over the next five years.
Source: China International Radio