Electrified cars, record sales in China and overtaking thermal cars

Electric vehicles and plug-in hybrids have reached peak sales in China, overtaking combustion-engined cars in historic numbers in July 2024, marking a significant turning point in the global automotive industry.

Electric and plug-in vehicles, sales on the Chinese market grow

In Chinathe vsales of electrified vehicles they surpassed for the first time in history, 50% of salesan “overtaking” of electrified cars compared to those with only internal combustion engines (petrol and diesel).

To be fair, the highest numbers were recorded by the overall electric, hybrid and plug-in carswhich together represent the 50.7% of which the 28% concerns those fully electric EVs. A surprising result if we consider that only three years earlier their share was 7% confirmed specifically by the association that analyses car sales in the Asian country (China Passenger Car Association – CPCA).

In short, while in Europe the market of electric and plug-in is in a “cooling down” phase, in China recent data have shown that these engines are expanding compared to internal combustion engines. Despite this success, it must also be highlighted that all that glitters is not gold: in fact, the Chinese automotive market as a whole has recorded a slight decline in total sales (-3.1%).

China’s Best-Selling Electric Vehicles

Starting since January and until the month of July of this year 2024, in China they have been sold 4.99 million electric vehicles and hybrids (+ 34% compared to last year).

Here are the brand and the related units sold in the first 6 months of 2024, which stand out in this classification:

• 4) The Cars: : 51,000 – Li Auto Inc., also called Li Xiang, is a Chinese automobile manufacturer founded in 2015 and headquartered in Beijing, specializing in electric vehicles.

• 5) Changan: 50,000 units sold

But Xiaomi, a well-known smartphone brand, has also expanded its sector, in fact it has also become a vehicle manufacturer. Xiaomi in China has reached 13,000 vehicles sold in July 2024.

Electric Vehicles, Here’s Why China Is a Leader in Electric

As stated so far, the China it’s the most largest electric car market in the world. The push towards electric mobility has been driven by many factors, including government targets, tax incentives, the local auto industry, and growing environmental awareness among consumers.

But specifically, here are the Highlights why Chinese prefer electric:

• Government policy: The Chinese government has adopted a series of policies to promote the production and use of electric vehicles, including purchase subsidies, restrictions on the sale of internal combustion engine vehicles in some cities, and large investments in charging infrastructure.
• Competitive prices: Chinese companies such as BYD, Nio and Xpeng have rapidly developed electric models that are competitive in terms of price and performance.
• Environment: In China, there is a great awareness of the impact that transportation has on the environment, for this reason many consumers choose electric vehicles to reduce emissions.
• Infrastructure: China has developed a large network of charging stations that facilitate the use of electric vehicles.
• Lower operating costs: the management of an electric car has lower costs than a thermal one, periodic services are very cheap (Tesla doesn’t even provide them), the wear of the mechanical components is practically zero, the electricity drawn from private utilities is very cheap compared to traditional fuel.
• Tax incentives: In many cases, the government puts in place some tax incentives for the purchase of electric vehicles.
• High performance: The new electric vehicles offer high performance, high speed and smooth driving experience.

In conclusion, China is truly at the forefront of the transition to electric mobility, and its success is influencing the global market. Electric vehicles are becoming increasingly accessible and attractive to consumers, and are expected to continue to increase in popularity, and therefore diffusion, in the coming years, also driven by the obligation imposed by the EU for 2035.