 |
| China's auto market |
The month of July 2024 proved to be a milestone in the history of China's auto market. Electric and hybrid vehicles accounted for more than half of all vehicles sold that month, marking a change that China adopted much earlier than Western countries. This change not only reflects the direction of China's automotive industry but is also an important step in the global EV revolution.
The rise of EVs and new possibilities
According to the Chinese Passenger Car Association (CPCA), sales of 'new energy vehicles' (NEVs) in July increased by 37% compared to last year. This figure clearly shows how quickly China's auto market is moving towards electric vehicles. Three years ago, NEV sales were just 7% of total vehicle sales, but today this figure has reached 50.7%.
This success story is the result of groundwork and strategic investments by China's motor industry. China has invested heavily in the supply chains of electric vehicles (EVs) and hybrid cars, which has helped the domestic EV industry to emerge rapidly. This investment not only encourages new brands but is also outpacing existing foreign brands.
Global comparison and India's scenario
At the same time, the share of EV and hybrid vehicle sales in the US was 18% in the first quarter of this year. China's growth pace increased from 28.6% in June to 37% in July. This growth has proved to be important for local brands like BYD and Li Auto, which have set new sales records.
Talking about India, the pace of adoption of electric vehicles there is much slower than in China, but India is also slowly moving in this direction. Subsidies and new policies given by the government are important steps towards promoting EVs in the Indian market.
China's new policies and future prospects
In July, China's state planning agency doubled the cash subsidy on vehicle purchases, increasing it to 20,000 yuan ($2,785). Along with this, major cities like Beijing have announced to increase in their NEV license quotas, which is the first easing of restrictions since 2011. These initiatives not only stimulate the local market but also send a positive message globally.
However, the price war also continues in China's auto market, with a flood of new and affordable cars. But now this war is moving towards a little peace, as automakers try to protect margins. BYD cut prices of its hybrid SUV BAO 5 in late July, but less drastically than in the first half.
Export Challenges and Future Direction
Vehicle exports saw a 20% increase in July, down from June. China-made EVs are bracing for new EU tariffs, which could impact exports. However, CPCA Secretary-General Cui Dongshu expects stability in August and September.
This milestone by China is not only shaping the future of electric vehicles but also shaping the direction of the global auto industry. As the market share of electric vehicles continues to grow, China is set to show the world a new direction with its rich experience and innovations.
0 Comments