Sales of NEVs increased by 27% between May 1 and May 26 as the sector’s growth accelerated

A man looks at BYD Tang during the press day of the 100th Brussels Motor Show in Brussels, Belgium, January 13, 2023. Photo:Xinhua

Industry data showed that China’s new energy vehicle (NEV) market saw strong sales growth in May, a sign of the sector’s rapid growth and strong consumer demand.

From May 1 to May 26, NEV retail sales increased 27 percent year-over-year to 574,000 units, and month-on-month also increased 2 percent.

Cumulative retail sales this year increased 32 percent year-on-year to 3.025 million units, according to data released Wednesday by the China Passenger Car Association.

From May 1 to May 26, total NEV wholesale sales reached 620,000 units, up 25 percent year-on-year.

Since the beginning of this year, 3.36 million NEVs have been transported through wholesale channels, an increase of 29% year-on-year.

Thanks to May Day holidays and auto shows across China, consumer enthusiasm for car purchases has increased significantly this month. Nationwide marketing campaigns combined with manufacturer incentives effectively increased sales.

“Over the past few years, Chinese NEV brands have achieved world-leading technological advantages. Domestic demand for NEVs is also very strong and will continue to grow, Wu Shuocheng, a veteran automotive industry analyst, told the Global Times on Wednesday.

“We dominate the NEV market in the country. Internationally, our exports challenge Japanese and South Korean brands in low- and mid-range markets and significantly enter the high-end segment controlled by Western brands,” Liu Dingding, a technology industry observer, told the Global Times on Wednesday.

Chinese auto conglomerate BYD introduced its latest plug-in hybrid car system on Tuesday, marking a milestone in the global hybrid vehicle industry.

The new system features the world’s highest engine thermal efficiency of 46.06 percent, the lowest fuel consumption of 2.9 liters per 100 km in low battery mode and the longest combined range of 2,100 kilometers.

“The primary competitive advantage of Chinese NEVs lies in their advanced technology, which helps minimize production costs while maintaining customer confidence in their good quality and services. China’s NEV industry can further widen the gap with competitors in the global hybrid vehicle market, Wu said. .

Many Chinese brands have unveiled updated models with longer ranges exceeding 2,000 kilometers, including Changan Auto, SAIC Motor, GAC Motor and Chery.

Thirty years ago, China attracted foreign investment to develop its automotive industry, offering access to its vast market in exchange for technology. Now Chinese automakers can export their technology, Wu said.

Although Chinese vehicles are highly competitive and have achieved high sales in domestic and international markets, they still enjoy free and fair competition in the market, experts say.

“If foreign brands adopt an open and cooperative attitude that benefits both parties, Chinese automakers will be able to cooperate with international manufacturers for joint development, improving global industry and accelerating the transition to the era of electrification and intelligence,” Liu said.

“However, some voices in the West say we have ‘overcapacity’, partly due to inadequate infrastructure and protectionism. Despite this rhetoric, we will continue to develop NEV technology that meets our needs,” Wu added.