Caixin
Aug 11, 2020 07:29 PM
BUSINESS & TECH

After a Year in Reverse, New-Energy Vehicles Sales Return to Growth

picture
picture

What’s new: New-energy vehicle (NEV) sales in China rose 19.3% year-on-year to 98,000 units for the month of July, the China Association of Automobile Manufacturers reported on Tuesday.

The association predicts total NEV sales for this year will reach about 1.1 million units, with nearly 10% of that going to U.S. carmaker Tesla. That would represent about an 8% decline in total sales from 2019.

The rise for the category came as China’s broader motor vehicle market rose 16.4% for the month, led by strong sales for commercial vehicles and large trucks as fleet operators snapped up new vehicles ahead of tougher emissions standards set to take effect next year.

Why should we care: July marks the first time China’s NEV market has posted sales growth in a year.

Sales began to decline in the second half of last year after Beijing sharply reduced subsidies meant to boost the industry. The central government took the step as part of its efforts to make NEV producers more self-sufficient as the technology improves.

The industry also received a boost at the start of the year when a new Tesla factory in Shanghai started turning out cars. Since then, the U.S. company has become a major player in the market.

Contact reporter Yang Ge (geyang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Support quality journalism in China. Subscribe to Caixin Global starting at $0.99.

Download our app to receive breaking news alerts and read the news on the go.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code