Chinese NEV Sales Exceed 50 Percent of New Cars in October

In the month of October, China's new-energy vehicle (NEV) market achieved a remarkable milestone, with NEV sales surpassing 50 percent of total new car sales. This significant shift underscores a growing trend toward eco-friendly transportation solutions within the country's automotive industry.

According to data released by the China Association of Automobile Manufacturers (CAAM), from January to October, China's automotive sector has maintained robust growth, with NEV production and sales witnessing impressive increases. For the first time, NEV sales constituted 51.6 percent of all new car sales in October, as reported by China Media Group (CMG).

During the ten-month period, Chinese manufacturers produced 27.69 million vehicles and sold 27.68 million, marking over a 10 percent increase compared to the previous year. NEV production reached 13.02 million units, reflecting a 33.1 percent rise, while NEV sales also increased, totaling 12.94 million, up 32.7 percent.

The export market for NEVs is also thriving, with 2.014 million units shipped from January to October, illustrating a substantial growth of 90.4 percent in comparison to the same timeframe last year.

The growth momentum in the NEV sector has been attributed to various factors, including the impact of nationwide auto trade-in subsidies, as noted by CAAM's Deputy Secretary-General Chen Shihua. Additionally, the anticipated reduction of NEV purchase taxes next year has prompted consumers to accelerate their purchases, leading to a surge in demand.

"The change in purchase-tax policy has clearly spurred a wave of buying," explained Liu Dingding, a seasoned industry analyst. He pointed out that with a full tax exemption set to expire in 2025 and a 5 percent tax returning in 2026, consumers are increasingly aware of the impending price differences, prompting earlier buying decisions.

Liu emphasized that while the promotional campaigns, such as Double 11, may have played a role, they were not the main drivers of the sales increase. October represents a traditional peak season for the automotive industry, and the marketing efforts were effective largely because they aligned with growing consumer demands.

In particular, Liu noted that the growth in the NEV market is fundamentally rooted in the industry's expanded offerings. Chinese NEVs are now available across various segments, ranging from budget-friendly options to luxury models, showcasing superior intelligence, performance, and reliability compared to both fuel-powered vehicles and international competitors.

As a result, more affluent consumers are increasingly opting for Chinese brands, which have built a strong reputation for quality and trustworthiness in the NEV market, thereby contributing to this upward trajectory.