China’s NEVs’ Market Penetration Surpassed 50% in July, Exceeding Fuel Vehicles

China’s new energy vehicle development has reached a historic moment, with the penetration rate exceeding 50% for the first time in July 2024, surpassing traditional fuel vehicles.

According to preliminary statistical data released today by the China Passenger Car Association, from July 1 to 31, the retail sales in the passenger car market reached 1.729 million units, a year-on-year decrease of 2% compared to the same period last year, and a month-on-month decrease of 2%. Cumulatively this year, retail sales have reached 11.568 million units, a year-on-year increase of 2%. From July 1 to 31, nationwide wholesale of passenger cars reached 1.956 million units, a year-on-year decrease of 5% compared to the same period last year, and a month-on-month decrease of 10%. Cumulatively this year, wholesale has reached 13.708 million units, a year-on-year increase of 4%.

From July 1 to 31, the retail sales of new energy vehicles in the passenger car market reached 879,000 units, a year-on-year increase of 37% compared to the same period last year, and a month-on-month increase of 3%. The cumulative retail sales since the beginning of this year total 4.991 million units, a year-on-year increase of 34%. From July 1 to 31, the wholesale volume of new energy vehicles by national passenger car manufacturers reached 955,000 units, a year-on-year increase of 30% compared to the same period last year, but a decrease of 3% compared to the previous month. The cumulative wholesale volume since the beginning of this year is 5.575 million units, a year-on-year increase of 30%.

According to this data, the retail sales of new energy vehicles in July 2024 account for 50.84%.

According to data from the Passenger Car Association, in the first half of April 2024, the retail penetration rate of domestic new energy vehicles (NEVs) surpassed 50% for the first time. In the third week of May 2024 (May 13-19), the number of domestic new energy passenger cars insured reached 168,000, and the penetration rate for new energy vehicle insurance also exceeded 50% for the first time, reaching 50.2%, surpassing that of fuel vehicles.

Now, in July 2024, the penetration rate of new energy vehicles in China has for the first time fully exceeded 50% for an entire month. He Zhiqi, Executive Vice President of BYD Company Limited, also confirmed that in July, the terminal insurance penetration rate for new energy vehicles in China reached 50.8%, marking the point at which new energy vehicles have truly become mainstream, while fuel vehicles have become a minority.

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