2023-06-08 11:16:00
With 1.76 million passenger cars sold in May, the Chinese market, the world’s largest automobile market, recorded a fine increase of 28.6% over one year, the Chinese Federation of Passenger Car Manufacturers (CPCA) said on Thursday. June 8.
Of these, 480,000 vehicles were electric, or around 27% of the total. Sales for this type of model thus continue to show impressive growth in the huge Chinese market (+48% over one year).
The Chinese electricity market has experienced exponential development in recent years, driven in particular by purchase subsidies. However, they disappeared at the end of December 2022, as the government considered that the market no longer needed support.
Chinese brands dominate major manufacturers
Dozens of innovative local brands have entered the electric market and compete with foreign manufacturers who are struggling to adapt. The Chinese BYD was thus in May the undisputed champion of electric vehicles in its country with more than 239,000 cars sold. Far ahead of Tesla and its 77,695 vehicles sold. The American giant, however, has not said its last word. He, who already has a gigantic factory in Shanghai, expressed his wish in April to set up a second to manufacture batteries.
Volkswagen also wants to strengthen its presence in the Chinese market. The manufacturer, which has seen its sales in the country increase sharply in recent years in electric vehicles, said in April that it wanted to invest around one billion euros in a new development center for this type of vehicle. This new structure, which should open in early 2024, will be dedicated to the design of cars for the Chinese market and will be located in Hefei (east), a large city located 400 km west of Shanghai.
It should also be noted that exports of Chinese electric vehicles in May more than doubled over one year (+135.7%). They accounted for more than 30 percent of total Chinese cars sold internationally, according to the CPCA. BYD, which markets its cars in fifty countries, including Europe, is one of the multitude of Chinese manufacturers to now turbo abroad. The Chinese giant is also accused by its competitor Great Wall Motors of selling hybrid car models that do not meet the emission standards in force in China.
The Chinese market boosts the world
Globally, more than 10 million electric cars were sold in 2022 worldwide, “and sales are expected to grow another 35% this year to reach 14 million” units, according to a late April report from the International Energy Agency (IEA).
“This explosive growth means that the market share of electric cars has increased from 4% in 2020 to 14% in 2022 and is expected to increase further to 18% this year”, according to its latest projections.
Electrical sales are most dynamic in the world’s largest markets, namely China, the United States and Europe. The former Middle Kingdom has even taken a step ahead: nearly two out of three electric cars in the world are now sold there, and its factories dominate the sector of batteries and the components necessary for their manufacture. The IEA sees the market share of electric cars reaching 60% in these three geographies by 2030.
(With AFP)
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