Half of all vehicles sold in China in July reportedly were either new pure electric vehicles (EV) or plug in hybrids, industry data showed, a milestone that underscores how far the world’s biggest auto market has leapt ahead of western counterparts in EV adoption.
Reuters said sales of so called new energy vehicles (NEVs) jumped 37% year on year last month, accounting for a record 50.7% of car sales, citing data from the China Passenger Car Association (CPCA).
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NEV sales accounted for just 7% of total vehicle sales in China three years ago but its heavy investments in EV supply chains have propelled the growth of the domestic EV industry, leaving many established foreign brands scrambling to catch up.
By contrast, the share of electric and hybrid vehicle sales in the United States amounted to 18% in the first quarter of this year, according to the US Energy Information Administration, a research firm.
The pace of growth for NEVs in China accelerated from a 28.6% surge in June. Sales of pure electric vehicles climbed 14.3% in July, up from 9.9% growth for June, Reuters said.
Solid growth in NEV sales helped some local brands including BYD and Li Auto set fresh monthly sales records in July.
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By GlobalDataBut overall domestic car sales fell 3.1%, extending declines for a fourth straight month with consumer confidence weak as the economy struggles to gain momentum amid a prolonged crisis in the property market, Reuters reported.
A protracted price war that had seen a flood of domestic brands competing on newer and cheaper models was also easing, as automakers seek to protect margins, with the CPCA’s secretary general Cui Dongshu expecting further stabilisation in August and September.
Vehicle exports in July rose 20% year on year, easing from an 28% increase in June, as China-made EVs brace for provisional EU tariffs, Cui said, according to Reuters.
