China's electric vehicle boom: Sales surge to 11 million in 2024
The Chinese Passenger Car Association (CPCA) reported on Thursday that the sales of electric and hybrid vehicles (NEVs) in China increased by 40.7% year over year in 2024, reaching a record level of nearly 11 million units.
According to CPCA data, passenger car sales rose by 5.3% in 2024, reaching 23.1 million units. Thus, 2024 marked the fourth consecutive year of growth.
CPCA also reported that 47.7% of new cars on Chinese roads in 2024 were 10,899,000 hybrid and electric vehicles. From August to December, sales of these types of cars exceeded 1 million units each month.
Nearly 30% (over 6.6 million) of all new cars sold in China in 2024 were covered by government subsidies. Of this number, more than 60% were electric and hybrid cars. The Chinese government subsidises the purchase of such vehicles up to £2,300, while it provides up to £1,650 for petrol-powered cars.
Additionally, CPCA's Secretary General, Cui Dongshu, noted that in 2024, manufacturers reduced the prices of 200 electric and hybrid car models. The association's data also shows that another record year in car sales, including the NEV segment, did not translate into greater manufacturer profits.
Reuters points out that since 2020, the Chinese automotive industry has been consistently experiencing a decline in profitability. CPCA also predicts that the price war will not ease in 2025.
