In 2021, almost 3 million new energy cars were sold in China, that is, battery electric and plug-in hybrids, and this year there will be many more, specifically twice as many. The China Passenger Car Association (CPCA) has raised its annual forecast from 5.5 million to 6 million, given sales data for July.
The passenger car market in China grew by 20.1% year-on-year in July to 1.84 million units, of which 486,000 correspond to electric and plug-in hybrids. That represents more than a quarter of their sales, 26.4%, which is a much more significant number than talking about shares from Norway (which is a small market). Compared to July 2021, plug-ins grew by 117.3%.
And the forecast of 6 million plug-ins is conservative, mind you; it could increase for the fourth quarter of the volumes continue to be what they are. Tesla did not exactly shine in July, as it was doing work at Giga Shanghai to increase its production capacity to one million units. Its volume fell from June to July by a relevant 64%. They’ll get it back.
Who cuts the cheese is BYD, with a volume of 162,530 units, a manufacturer that no longer sells gasoline versions, only plug-ins. As for the promising NIO, XPeng, or Li Auto, their July volumes were 10,052, 11,524, and 10,422 units, respectively. More humble car brands such as Hozon (14,037) or Leapmotor (12,044) follow above in volume.
Car sales in China have been suffering for four consecutive quarters due to supply chain problems, although Chinese manufacturers have fewer problems than others in accessing components and raw materials. Added to this were the massive closures of cities due to small outbreaks of COVID.
Excluding Tesla or Polestar (Geely), exports of electric cars from China are not very important, but brands such as BYD, XPeng, NIO, and even Great Wall are beginning to prepare for the European landing, not to mention the good performance of SAIC with the MG brand, at the time its Trojan horse. China began years ago to promote this jump, and the stimuli persist.