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Will China’s new energy vehicle market continue to grow?

China’s new energy vehicle (NEV=BEV+PHEV+FCEV) market has grown rapidly under government support. The China Association of Automobile Manufacturers announced that factory shipments in 2022 were up 93.7% year-on-year to 6,858,000 units, accounting for 25.5% of the total vehicle fleet. The target set in the New Energy Vehicle Industry Development Plan (2021-2035) established by the Chinese Government in 2020 for the sales ratio of new energy vehicles to be around 20% in 2025 was achieved three years ahead of schedule.

Growth continued even after the subsidy for the purchase of new energy vehicles expired in 2023: factory shipments of new energy vehicles in January-April rose by 43.2% year-on-year to 2,217,000 units, accounting for 26.9% of all vehicles. Although the growth rate fell from the previous year, it was still 7.1% higher than that of the total automobile market.

Some of the content of the annual meeting of the China Electric Vehicle 100 (ChinaEV100), where representatives of Chinese manufacturers and experts discussed the current situation and future development trends of China’s new energy vehicle market, will be published in the June 2023 issue of the FOURIN China Automotive Research Monthly, which will be published on 5 June.

Several experts predict that the size of the new vehicle market for new energy vehicles in China in 2023 will be between 8 and 9 million units. It was also mentioned that accelerating the installation of infrastructure facilities such as charging and battery replacement stations is essential for the development of the NEV industry. Furthermore, some experts have pointed out the urgent need to develop relevant systems for the maintenance and repair issues of new energy vehicles.