China’s electric vehicle sales may increase 27 per cent this year to a record, as their popularity offsets slumping demand for cars
- Sales of battery-powered and plug-ins that run on hybrid gasoline-electric engines are likely to grow by 27 per cent to a record 1.6 million units in 2019
- From home-grown carmakers like Geely Automobile Holdings to foreign marques like Ford Motor Company and start-ups like Xpeng Motors, every noteworthy carmaker in China has an EV ready to roll out this year
Electric vehicles (EVs) are projected to gain popularity with Chinese car owners this year, as new designs with improved performance offset a government cut in price subsidies in the world’s largest vehicle market.
Sales of battery-powered and plug-ins that run on hybrid gasoline-electric engines are likely to grow by 27 per cent to a record 1.6 million units in 2019, from last year’s sales of 1.26 EVs, Xinhua News Agency said, citing data by the China Association of Automobile Manufacturers (CAAM). That would make nearly seven out of every 10 vehicles on Chinese roads an EV.
“Developing new-energy vehicles is an important process for China to evolve from a big vehicle-making country to a powerhouse with strong automaking capabilities,” said Cui Dongshu, secretary general of the China Passenger Car Association. “Policies by several ministry-level authorities are aimed to ensure a sustainable growth of the auto industry.”
From China’s home-grown carmakers like Geely Automobile Holdings to foreign marques like Ford Motor Company and start-ups like Xpeng Motors, every noteworthy carmaker in China has an EV ready to roll off the assembly this year. Geely’s Geometry A electric vehicle, which can go 500 kilometres on a single charge, has received 26,000 orders. Guangzhou Auto, the Chinese partner of Honda Motors, will launch its Aion S model, with a design capability of 630 kilometres on a single charge.
Interactive infographic: Global carmakers and their Chinese venture partners
China’s sales of EVs had outpaced the rest of the world since 2015, jumping 61.7 per cent last year, helped by generous cash subsidies and tax rebates to nurture the home-grown industry.
By 2025, China’s government wants home-grown carmakers to have an 80 per cent market share of EVs sold in China, out of 3 million units to be sold by then, according to the Chinese government’s “Made in China 2025” industrial master plan, which lay out targets for 10 key industrial sectors of strategic importance to the nation.