Retail sales for new energy vehicles (NEVs) in China continue to rise, with official data for July showing sales exceeding the 50-percent penetration mark, for the first time surpassing the sale of conventional passenger vehicles.
New energy vehicles are gaining more recognition among consumers in China. About 878,000 units of such vehicles were sold last month, surging 36.9 percent year on year, according to the China Passenger Car Association.
In Chengdu City, southwest China's Sichuan Province, an electric vehicle dealership is frequently packed with customers. Apart from experiencing the features of new car models, visitors can even get some exercise, have a sip of coffee, and enjoy an artistic masterpiece in the dealership's multi-level building.
The bustling environment in the complex is a sign that Chinese customers are taking electric vehicles more seriously as an option.
"I've been driving gas-powered cars for the past seven or eight years, but now it seems like NEVs are really stepping up their game. There are also promotions online, and there are many running on the streets. So I want to consider changing to an NEV. First off, I'm drawn to the high-tech features. Then there's the comfort level when you're sitting in them. Plus, of course, they're energy-efficient, which is a big plus," said Gu Lei, a car buyer.
The proportion of new energy vehicle sales among the country's total vehicle sales came in at 51.1 percent in July, up 15 percentage points from the same period last year. This means that for the first time, new energy vehicles are selling more than conventional gasoline automobiles in the country.
Creative concepts at brick-and-mortar dealerships, bringing new energy vehicles closer to consumers, are one of the key forces behind the boost in sales.
"Since our project launched in 2022, we have basically achieved a satisfactory state of operation. We've seen a customer referral rate that's climbed to between 15 and 20 percent, which is really amazing. Our project has earned the trust of many customers and the endorsement of major manufacturers," said Hu Liangli, project director of Ganghong Auto EV World.
In addition to the variety of choices and the growing acceptance of new energy vehicles, industry insiders said continuous technological upgrades and competitive prices are driving their rapid growth in China.
"The entire ecosystem as well as the government built up a very good environment for applying the new energy vehicle, [and] for the energy storage, for example, battery swapping, battery charging. All the infrastructure made this happen. And of course, the industry itself, our OEMs, our supply chains also support such fast growth compared to the other markets around the world," said Zhang Junyi, former partner at consulting firm Oliver Wyman.
Experts anticipate continued growth in the new energy vehicle market, with Chinese brands poised to lead both domestically and on the global stage. Joint venture car manufacturers are aligned closely with Chinese consumer demand, crafting models that are designed and produced in China while catering not only to the domestic market but also global consumers.
China's NEV sales outnumber fuel passenger cars in July, experts expect continued growth
