China’s rapid transition to electric vehicles continued in July, with half of all cars sold being either pure electric or plug-in hybrids. This marks a significant milestone, highlighting the country’s substantial lead over Western markets in EV adoption.
Sales of new energy vehicles (NEVs), which include EVs and plug-in hybrids, surged 37% year-on-year to account for a record 50.7% of total car sales. This is a dramatic increase from just 7% three years ago.
China’s massive investments in EV supply chains have fueled the growth of its domestic EV industry, leaving foreign competitors struggling to keep pace.
In contrast, the U.S. electric and hybrid vehicle market share stood at 18% in the first quarter of this year.
While NEV sales growth accelerated from 28.6% in June to 37% in July, overall car sales declined for the fourth consecutive month. Weakening consumer confidence amid economic struggles and a prolonged property market crisis contributed to the downturn.
Despite the broader market challenges, several domestic brands, including BYD and Li Auto, set new sales records in July.
[source: Reuters]
