[News] China’s New Energy Vehicle Penetration Rate Exceeds 40%, Expected Optimistic Growth by 2024

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China’s penetration rate of new energy vehicles (NEVs) exceeded 40% for the first time in November this year, reaching 40.4% in domestic retail sales, a 4 percentage point increase from the same period last year. Optimistic growth is anticipated by 2024, with wholesale sales of new energy passenger vehicles expected to reach 11 million units.

The China Passenger Car Association (CPCA) released the latest data, forecasting that the total sales of passenger vehicles in China in November 2023 will reach 25.5 million units. With a huge increase of the 3.2 million units exported in 2017, the overall sales of passenger vehicles are set to significantly surpass the wholesale volume of 24.5 million units in 2017, reaching a historic high.

It is evident that NEVs in China are seen as a catalyst for the next wave of economic momentum. According to a report by the BJNews, Cui Dongshu, the Secretary General of CPCA, stated that the Chinese domestic retail penetration rate of new energy passenger vehicles in November was 40.4%, a 4 percentage point increase from the 36% penetration rate of the same period last year.

This marks China’s first-ever monthly penetration rate of new energy passenger vehicles exceeding 40%. As a key driver of growth in the Chinese passenger vehicle market, the retail sales of NEVs in November increased by nearly 40%, reaching 841,000 units with an 8.9% MoM growth.

In the first 11 months of this year, China’s cumulative retail sales of new energy passenger vehicles reached 6.809 million units, a YoY increase of 35.2%. CPCA believes that the growth outlook for the new energy passenger vehicle market in 2024 is relatively optimistic, with wholesale sales expected to reach 11 million units, a net increase of 2.3 million units, a 22% YoY increase, and a penetration rate of 40%.

Chinese brands in the NEV sector are gradually expanding their market influence through multifaceted development in technology and sales strategies. According to CPCA statistics, in November, 18 companies saw wholesale sales exceed 10,000 units, accounting for 88.9% of the total new energy passenger vehicle volume. BYD continued to lead the rankings with a monthly sales volume of about 301,400 units, followed closely by Tesla China with 82,400 units. The export of Chinese brand new energy passenger vehicles also showed significant growth, with A0-class electric vehicles accounting for nearly 60% and becoming the absolute mainstay of exports.

(Image: BYD)

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