China, which is renowned for manufacturing the greatest number of electric cars worldwide, has once again outperformed the US and Europe by selling half of its automobiles as plug-in hybrids or electrics. After the United States, the country began selling and producing electric vehicles; but, low labor costs, government support, and advantageous battery prices have elevated China to the forefront of EV production.
According to data released by the China Car Passenger Association, sales of new energy cars rose to 37% over the previous year, or 50.7 percent of all vehicle sales. Three years ago, NEV sales in China made up only 7% of all vehicle sales. Nonetheless, massive supply chain investments have fueled the growth of the domestic EV market, forcing several international brands in the US and Europe to struggle.
According to reports, the US Energy Information Administration, a US-based research organization, claimed that in the first quarter of this year, the market share of hybrid and electric vehicles in the US was 18%. In China, the number of NEVs began to rise in June at a rate of 28.6 percent, while sales of fully electric vehicles increased by more than 9.9 percent in June to 14.3 percent in July.
It is interesting to note that the mounting growth in NEVs promoted the domestic automobile brands Li Auto and BYD to observe more sales in the quarter. While China saw a rise in pure EV sales, internal auto sales fell 3.1%, marking the fourth consecutive month of declines in this category. People’s confidence has been undermined by the continuous disputes in the real estate market as well as the faltering economy.
