NEVs make up nearly half of China's auto sales in July

New-energy vehicles (NEVs) accounted for 43.8 percent of China's total sales of new cars in July. Sales and exports of NEVs continued to rise, the latest industry statistics showed, showcasing the growth potential of the NEV sector.

In July, NEV production stood at 984,000 units, up 22.3 percent year-on-year, while sales of NEVs totaled 991,000 units, up 27 percent on a yearly basis, according to data released on Friday by the China Association of Automobile Manufacturers (CAAM).

The sales of many NEV enterprises increased significantly in July. For example, the sales of BYD, Li Auto, Leapmotor, Zeekr and Voyah increased by more than 30 percent year-on-year.

According to statistics released by the China Passenger Car Association (CPCA) on Thursday, the domestic monthly retail penetration rate of NEVs reached 51.1 percent in July, which means that in China, the majority of consumers opted for NEVs when purchasing passenger cars.

"The main growth driver of the NEV market this year is still plug-in hybrid electric vehicles. This model can be powered by both fuel and electricity, so it has more usage scenarios than other models," Chen Shihua, deputy secretary-general of the CAAM, said on Friday during a briefing on the automobile market in July.

According to a CAAM report published in July, China's annual sales of NEVs are expected to reach 11.5 million in 2024, which would be a record-breaking number.

"China's NEV sector is expected to maintain a stable growth trajectory in the coming months, thanks to its ongoing technological innovation and upgrades in domestic auto products," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times.

Apart from domestic sales, NEV exports witnessed growth of 1.3 percent year-on-year in July, reaching 92,000 units, CPCA data showed.

China's overall auto exports also saw an annual increase of 19.6 percent in July, according to CAAM data.

The exports have maintained robust growth this year. From January to July, the total exports of cars reached 3.262 million, up 28.8 percent year-on-year.

In the first seven months, China's NEV exports surged 17.8 percent year-on-year, CPCA data showed.