New energy vehicles (NEVs) are taking a growing share of China's car market, thanks to a complete industrial chain and rising consumer approval, the China Association of Automobile Manufacturers (CAAM) said on Wednesday.
Total auto production and sales reached 3.063 million and 3.016 million units, respectively, in October, up 2.5 percent and 2 percent from the previous month, according to the latest CAAM data released on Wednesday.
Sales of NEVs have kept climbing. NEV production and sales in October reached 2.017 million and 1.94 million units, respectively, up 13.8 percent and 13.1 percent year on year. NEVs accounted for 64.3 percent of all new vehicles sold in the month.
Since the beginning of this year, NEVs have strengthened their position as the mainstay of the market, with their share of cumulative sales rising to 54.8 percent in the first 10 months. NEV passenger cars, for example, took more than 70 percent of the domestic passenger car market in October.
"As for why NEV penetration keeps rising, at the industry level, the advantages of China's complete NEV industrial chain have been fully demonstrated, and the supply of products is constantly enriched; at the market level, consumers' recognition of NEV products keeps growing, particularly in terms of their driving range, safety and smart features," said Chen Shihua, deputy secretary-general of CAAM.
Chen said the rising share of NEVs in China's car sales is not a short-term phenomenon, but the combined result of technological iteration, improved product strength, and higher market acceptance.
Industrial chain strength, consumer approval lift China's NEV share
