Overview of New Energy Vehicles in China

1. China Continues to Lead Global Auto Production and Sales:

In 2023, China’s automotive production and sales exceeded 30 million vehicles for the first time, marking the 15th consecutive year as the global leader. The rapid development of new energy vehicles has been a significant driving force behind this achievement, with both production and sales surpassing 9 million units. China’s new energy vehicles have maintained the top global position for nine consecutive years, significantly influencing the transformation of the global automotive industry.

2. Accelerated Development of New Energy Vehicles:

   China’s new energy vehicle industry continues to hold a leading global position, with significant growth in production and sales, and a market share reaching 31.6%. Technological innovations and new models have driven rapid industry growth. Leveraging strategic boldness, China’s automotive industry has firmly seized the historical opportunity presented by the rise of new energy vehicles, reshaping the global automotive landscape. Notably, in the past year, domestic new energy vehicles accounted for about two-thirds of global sales, increasingly “weighing” heavily in the international market share.

3. Achieving Green and Low-Carbon Development Goals:

   The government has released numerous policies supporting the green and low-carbon transformation of the automotive industry, such as achieving peak carbon emissions by 2030 and setting targets for the proportion of new energy vehicles. Committed to promoting a transition to green energy and low carbon, China provides comprehensive support for the new energy vehicle industry. A key policy document released on January 11th aims to coordinate the advancement of green and low-carbon development in critical sectors, with a target for new energy vehicles to comprise 45% of new car sales by 2027, and the basic elimination of older internal combustion vehicles.

4. Policies Further Boost New Energy Vehicle Consumption:

   Various policies have been implemented to stabilize the market and promote consumption, such as tax exemptions and reductions on vehicle purchases, along with the issuance of consumption vouchers to boost new energy vehicle sales. The vehicle purchase tax exemption policy for new energy vehicles will continue until the end of 2027, with gradually reducing benefits over the years. The total tax relief from 2024 to 2027 is estimated to reach 520 billion yuan.

5. “Chinese Cars” Successfully Enter the International Market:

   Exports of new energy vehicles hit a new high, with domestic companies establishing production bases abroad, showcasing the international competitiveness of Chinese new energy vehicles. Over recent years, as China’s automotive industry rapidly developed and product quality continuously improved, new energy vehicles have not only won favor with domestic consumers but have also gained recognition and acceptance globally, with export volumes increasing year by year. The export of new energy vehicles has led to the expansion of the entire industry chain overseas, not only contributing to growth in vehicle production and sales but also adding vitality to China’s foreign trade economy.

Data Source: China Association of Automobile Manufacturers (CAAM)

6. Significant Advantages in Industry Chain and Technology:

   China has made significant progress in building the new energy vehicle industry chain, especially in power battery and electronic control technologies, enhancing its competitiveness in the global market. The rapid growth in new energy vehicle production and sales reflects the strength of the entire industry and supply chain. For instance, in 2023, Chinese companies held six of the top ten spots globally in power battery installation volume, accounting for over 60% of the market share, demonstrating strong global competitiveness.

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