The new energy vehicle market in China has seen remarkable growth in 2023, with new energy passenger vehicle retail sales increasing by 35% year-on-year from January to November, according to Cui Dongshu, secretary-general of the Passenger Car Association.
The wholesale sales of new energy passenger vehicles reached 960,000 units in November, a year-on-year increase of 31% and a month-on-month increase of 7%. From January to November, wholesale sales of new energy passenger vehicles reached 7.76 million units, a year-on-year increase of 35%. The decrease in the price of power batteries has helped drive this growth, as it has allowed companies to reduce production costs and eliminate historical inventory.
In November, the new energy vehicle market retailed 840,000 units, a year-on-year increase of 40%. Since the beginning of the year, a total of 6.8 million vehicles have been sold, also a 35% increase year-on-year. The trend of new energy vehicles in November was relatively stable, with the inhibitory effect brought by the promotion of fuel vehicles not being particularly strong.
New energy vehicle exports also saw growth in November, with 86,000 units exported, accounting for 23.5% of total passenger vehicle exports. A total of 940,000 units were exported from January to November, a year-on-year increase of 75%.
The performance of regional markets is gradually improving, with demand for new energy vehicles in medium-sized cities showing strong growth. The Chengdu market, in particular, has shown high growth, with products featuring low cost and high usability showing potential in the southwest region.
The usage characteristics of new energy passenger vehicles also saw notable changes, with the proportion of rental and leasing of pure electric vehicles gradually declining in 2020 and 2021-2022. Plug-in hybrids are increasingly becoming the choice for private consumption, and the demand for plug-in hybrids for rentals has been declining.
The regional penetration rate of pure electric passenger vehicles and plug-in hybrid passenger cars continues to grow across the country, indicating an increasing interest in new energy vehicles in various markets.
Overall, the new energy vehicle market in China has shown strong growth throughout 2023, with increased demand and performance across various sectors and regions. This data reflects a growing interest in new energy vehicles and suggests a promising future for this sector in the country.