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Innovation speed key to NEV success in 2025

Nation tops world list for 9 straight years in output, sales

China Daily | Updated: 2025-01-03 09:44
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People look at a Xiaomi SU7 electric car during an automobile exhibition in Tianjin in October. TANG KE/FOR CHINA DAILY

BEIJING — Despite facing challenges, China's new energy vehicle manufacturers made significant strides in 2024 and are poised to gain continued momentum as carbon reduction targets drive global demand for clean-energy vehicles.

For Chinese NEV manufacturers, the most significant milestone of the year came on Nov 14, when the country's annual NEV output surpassed 10 million for the first time, making China the first country globally to achieve this feat.

"The achievement holds tremendous historical significance and is the result of the concerted efforts of Chinese-branded carmakers," said Xin Guobin, vice-minister of industry and information technology.

According to industry insiders, this milestone further solidifies China's position as the world's largest producer and seller of NEVs, marking the beginning of a new phase of steady growth for the auto industry in the world's second-largest economy.

China has topped the global list for nine consecutive years in terms of both NEV output and sales, contributing to over 60 percent of the world's NEV output and sales in 2023.

The robust sales performance continued into 2024, with China's automakers selling more than 11.26 million NEVs in the first 11 months, a 35.6 percent increase compared to the previous year, said the China Association of Automobile Manufacturers.

In July, China's NEV sector reached another historic milestone, with the NEV retail penetration rate exceeding 50 percent. This figure indicates that NEVs have overtaken internal combustion engine vehicles as the preferred choice among car buyers.

Cui Dongshu, secretary-general of the China Passenger Car Association, attributed last year's NEV sales growth in part to strong policy support.

According to government policies, consumers trading in an old car for an NEV are entitled to a 20,000 yuan ($2,740) subsidy, higher than the 15,000 yuan received by those opting for a new fuel-powered car.

Chinese-branded cars also saw significant growth last year. In October, the share of such new energy passenger vehicles in total unit sales reached a record 70.1 percent, further highlighting the strong competitiveness of domestic brands.

Sales figures from China's leading NEV makers confirm their increasingly strong foothold. In October, NEV giant BYD shattered the monthly sales record for Chinese auto companies in terms of NEV sales, delivering an astounding 502,657 units and setting a new monthly sales record for global car manufacturers.

As of the end of November, BYD, Xiaomi and Leapmotor had all announced that they had met full-year sales targets ahead of schedule.

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