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China's passenger NEV market poised for continued growth following success of 2024

Xinhua | Updated: 2025-01-10 15:26
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Workers seen at a new energy vehicle production line in Liuzhou, Guangxi Zhuang autonomous region. JIN HAOYUAN/XINHUA

BEIJING - China's new energy passenger vehicle market saw double-digit increases in output, sales and exports last year, and is expected to continue expanding this year.

The country's new energy passenger car industry produced nearly 12.19 million units last year, up 36.4 percent year-on-year, according to data released by the China Passenger Car Association on Thursday.

The wholesale figure rose 37.8 percent year-on-year to 12.23 million units and retail sales grew 40.7 percent to nearly 10.9 million units, the association said.

Last year, 1.29 million new energy passenger cars were exported from China, representing a year-on-year increase of 24.3 percent.

In December alone, retail sales of new energy passenger cars rose 37.5 percent year-on-year to over 1.3 million units, capping off a strong year for the sector.

On Nov 14 last year, China's annual new energy vehicle (NEV) output exceeded 10 million units for the first time, a milestone that is unmatched globally.

Industry insiders attribute the strong performance of China's NEV sector in part to supportive policies. Last year, the country launched a multi-billion-dollar consumer goods trade-in program -- the first of its kind in nearly 15 years -- to stimulate domestic demand and address external uncertainties. The initiative has boosted consumption significantly and facilitated the auto industry's green transition.

Per government policies, consumers trading in old cars for NEVs are each entitled to a 20,000-yuan ($2,782) subsidy, higher than the 15,000-yuan subsidy given to those opting to replace their vehicles with new, fuel-powered cars.

As a result, NEVs accounted for over 60 percent of all new cars purchased under the trade-in initiative in 2024, according to official statistics.

By December, the domestic NEV retail penetration rate had climbed to 49.4 percent, up 9.1 percentage points from a year earlier and reflecting growing consumer acceptance.

Looking ahead, China's NEV sector is projected to maintain its growth momentum in 2025, supported by the continuation of large-scale trade-in policies.

The country on Wednesday announced a series of measures to broaden the consumer goods trade-in program, aiming to boost domestic demand and stimulate economic growth.

The association estimates that in 2025, new energy passenger vehicle retail sales will grow by 20 percent to total 13.3 million units, with a domestic penetration rate of 57 percent.

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