In July, electric vehicles and PHEVs (plug-in hybrids) accounted for more than half of car sales in China. This is a record high and an important milestone achieved for the first time in the world’s largest automotive market.
Sales of electric vehicles and PHEVs (the so-called NEV category – new energy vehicles) in China in July increased by 37% compared to the same period last year, reaching a record 50.7% of total car sales. Compared to June, the growth was 28.6%, and sales of electric vehicles alone increased by 14.4%.
The rapid growth in China has been impressive – three years ago, NEV sales accounted for only 7% of total car sales. Government incentives have largely contributed to this dynamic.
In July 2024, 1.73 million passenger cars (including ICE cars) were sold in China, which is 3.1% less than last year. Therefore, in order to boost car sales, at the end of July, the Chinese government doubled the cash incentives for electric vehicle sales to 20,000 yuan ($2,785) and made them retroactive to April.
In addition, electric vehicles are exempt from sales tax of up to 30,000 yuan ($4175) in 2024 and 2025. There is also a government scrappage scheme that provides consumers who replace their gasoline cars with electric vehicles. It allows for an additional 20,000 yuan ($2785).
In addition, some cities are also easing restrictions on car purchases. In July, Beijing announced that it would increase its quota of NEV licenses by 20,000. This was the first time since the capital introduced a strict car quota in 2011 to reduce air pollution and congestion.
All these incentives are leading to an increase in demand for electric vehicles.
Source: electrek
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