China’s EV sales pass 50% - Toyota Camry & Nissan Sylphy crash 60%

Summary

Wang Chuanfu, CEO of BYD, predicted that electric vehicles (EVs) would reach a 50% market share in China within three months, a forecast that analysts doubted. However, recent data shows that new energy vehicles, including plug-in hybrids and fully electric cars, have hit a 50.4% sales rate, a 30% growth from the previous year. This surge in EV sales has outpaced the overall car market, which declined by 11%. The Chinese government's continued incentives for EV production have contributed to this growth, contrasting with slowing EV sales in the US and Europe. The Economist Intelligence Unit had predicted a 50% EV market share by 2028, but BYD's CEO's prediction has proven more accurate. This shift towards EVs is not only driving innovation in battery technology but also significantly improving air quality in Chinese cities, offering a cleaner and more sustainable future for the automotive industry.

Takeaways

• 🚗 Wang Shan Fu, the CEO of BYD, predicted that electric vehicles (EVs) would reach a 50% market share in China within 3 months, which analysts disputed but has now been proven accurate.
• 📈 In the first two weeks of April, new energy vehicles, including plug-in hybrids and fully electric cars, hit a 50.4% market share in China, a growth of over 30% compared to the same period last year.
• 🔋 Approximately 30% of the new energy vehicles sold are fully electric, while the remaining 20% are plug-in hybrids, which are often used as fully electric vehicles in China.
• 📉 Despite an overall decline in car sales in China by 11%, EV sales have grown by 32% year-over-year, indicating a significant shift in market preference.
• 🌍 The Chinese government continues to incentivize EV production to improve air quality and support the growth of the domestic automotive industry.
• 🏆 China's EV sales are outpacing those of Europe and the United States, where growth has slowed or declined due to the end of incentives.
• 🔮 Predictions from the Economist Intelligence Unit suggested that new energy vehicles would not surpass 50% of sales until 2028, but this milestone has been reached earlier than expected.
• 🚀 The trend of increasing EV sales is supported by wholesale sales rates, which stood at 50.2% during the period in question.
• 📊 Legacy automakers are facing challenges as their sales in China decline, with some even declaring bankruptcy, while EV manufacturers are gaining market share.
• 💡 Innovations in battery technology, such as CATL's lithium iron phosphate battery and BYD's blade battery, are driving the future of electric vehicles with faster charging and higher energy density.
• 🌳 The shift to electric vehicles is contributing to improved air quality in Chinese cities, offering a better quality of life for residents.

Q & A

What did Wang Shan Fu, the CEO of BYD, predict about the electric car market in China?

Wang Shan Fu predicted that electric cars would hit more than 50% of the car market in China within 3 months.

What was the general consensus among analysts regarding the penetration rate of electric vehicles in China?

The analysts disagreed with Wang Shan Fu's prediction, stating that EVs wouldn't reach 50% penetration in China until possibly 2028.

What was the Chinese government's stance on the timeline for electric vehicles to reach 50% market share?

The Chinese government aimed for electric vehicles to reach 50% market share by 2025 or 2026.

What was the recent growth rate in electric vehicle sales in China?

Electric vehicle sales in China recently hit a 50.4% market share, which represents a growth of more than 30% compared to the same month in the previous year.

What percentage of the 50.4% new energy vehicle sales were fully electric and what percentage were plug-in hybrids?

About 30% of the new energy vehicle sales were fully electric, and about 20% were plug-in hybrids.

How did retail sales of passenger cars in China compare year-over-year?

Retail sales of passenger cars in China were down 11% year-over-year, but electric vehicle sales grew by 32% year-over-year.

What has been the impact of continued incentives for electric vehicles in China?

The continued incentives for electric vehicles in China have contributed to their growth in market share and have encouraged more production of EVs.

What was the Economist Intelligence Unit's prediction for new energy vehicle sales in China by 2028?

The Economist Intelligence Unit predicted that new energy vehicles would make up over half of sales in China by 2028.

What is the projected sales figure for new energy vehicles in China for the current year?

The projected sales figure for new energy vehicles in China for the current year is around 12 to 13 million.

What is the estimated percentage of fully electric vehicles sold worldwide this year, including China?

It is estimated that between 15 to 20% of all vehicles sold worldwide this year will be fully electric.

How have the sales of internal combustion engine vehicles been affected in China?

Sales of internal combustion engine vehicles are declining in China, with significant drops reported for brands like Toyota Camry and Volkswagen Levita.

What is the positive impact of the shift to electric vehicles on air quality in China?

The shift to electric vehicles is contributing to improved air quality in China, particularly in heavily polluted cities like Beijing.