22.9 million passenger cars were sold in China last year, up 5% from 2023. Nearly 11 million were electric, bringing the NEV penetration rate to 47.9% in 2024.
The China Passenger Car Association (CPCA) published the early retail sales data today. New Energy Vehicle (NEV) is a Chinese term for BEV (battery electric vehicle), PHEV (plug-in hybrid vehicle), and FCEV (hydrogen). FCEV sales are almost nonexistent in China.
Record-breaking 10.97 million sold NEVs is a 41.6% growth from 7.75 million in 2023 in China.
The 2024 breakdown of BEVs and PHEVs will be published tomorrow. However, we can assume the values from the previous data. Between January and November, BEV share was 58%, while PHEV share was 42% in China.
Between Jan – Nov, BEV sales grew 22% to 5.56 million units, while PHEV sales grew 80% to 4.03 million units.
The early 2024 data were compiled based on December early data published by CPCA. In December, passenger NEV retail sales in China were at an all-time high of 1.38 million, up 46% from the same month last year and 10% from 1.27 million in November.
This marks the fifth consecutive month over the 1 million mark. A total of 2.62 million passenger cars were sold in December, meaning the NEV penetration rate was 52.6%.
CarNewsChina expects China’s domestic NEV sales to rise about 39% to 15.3 million units in 2025, with penetration surpassing 57%. The total car sales in China should rise to 26.5 million units.
China announced renewing NEV trade-in subsidies for 2025, which is expected to boost demand by 3 million vehicles. Buyers who trade in old vehicles for new ones can qualify for a subsidy. If they choose a NEV, they may receive up to 20,000 yuan (2,700 USD) per vehicle. For those opting for an ICE vehicle with an engine size of 2.0 liters or less, the subsidy amount is 15,000 yuan (2,000 USD) per vehicle.
