Competition heats up as China's EV sales show a slight slowdown in the first two months of the year, with battery-powered EV sales increasing by 18.2% compared to the 20.8% growth observed throughout 2023, according to figures released by the China Passenger Car Association.
The slower growth in EV sales was partly due to reduced consumer interest caused by cold weather affecting the performance of EV batteries.
China's new energy vehicles have accounted for more than 60% of the global market share for two consecutive years
The latest data shows that global sales of new energy vehicles in the first two months of this year were 1.9 million, with China's market share remaining above 60%. Despite a slight decline, China has maintained its dominance for two consecutive years. However, experts suggest that companies must face up to the problem of uneven development of new energy vehicles around the world and strive to build a good reputation, especially in key markets such as Europe.
According to Cui Dongshu, secretary-general of the Passenger Car Association, global car sales reached 12.65 million units from January to February, of which new energy vehicles accounted for a large proportion, reaching 1.9 million units. Among them, pure electric vehicles accounted for 9.8% of sales, plug-in hybrid vehicles accounted for 5.2%, and hybrid vehicles accounted for 6.4%. The proportion of petrol-electric hybrids has also increased. China's new energy passenger vehicles continue to lead the way, accounting for more than 60% of global new energy sales.
New energy vehicles are an increasingly important part of the global automotive market. Although China maintains its position as the market leader, there is still much work to be done in promoting balanced global development. By focusing on reputation and credibility, companies can improve their position and contribute to the growth of new energy vehicles globally.
Cui Dongshu said that China's new energy vehicles have performed exceptionally well in the Southeast Asian market, benefiting from China's strong industrial chain. It is expected that by 2022, China's new energy vehicles will account for more than 60% of global new energy vehicles. China's dominance of the plug-in hybrid market will also continue, with sales expected to reach a record high of 70% in 2020. The first two months of 2024.
Electric vehicle sales are expected to remain strong in the first quarter of 2024, with an estimated 25% increase from the same period in 2023, with China leading the way. However, the biggest growth is occurring outside of major EV markets, signaling that a growing number of countries around the world are accelerating their transition to EVs.
Although China scrapped purchase subsidies for new energy vehicles last year, sales have remained strong, indicating a maturing market. Electric vehicle sales are expected to reach 10 million units by 2024, up 25% from the previous year, thanks to fierce competition and the relatively low cost of electric vehicles. This will account for approximately 45% of total vehicle sales in China, a significant turning point in the market.
Globally, the penetration rate of new energy vehicles is expected to increase to 13% in 2022 and further climb to 16% in 2023, with China leading the way with a penetration rate of 29%. However, the penetration rate of new energy vehicles in Germany, Norway, the United States and Japan still lags behind.
Overall, these trends bode well for the Chinese EV market, as well as the global EV market as a whole, as more countries adopt EVs to meet their energy needs.
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