China’s NEV sales beat expectations


Sales of new energy vehicles (NEV) in China went up 10.9 percent year on year in 2020 amid government efforts to encourage their use and ease pressure on the environment, data from the China Association of Automobile Manufacturers (CAAM) showed Wednesday, Xinhua reports.

NEV sales amounted to 1.37 million units last year. In December alone, NEV sales surged 49.5 percent year on year to 248,000 units.

The CAAM data also showed the number of automobiles sold in China totaled 25.31 million last year, down 1.9 percent from 2019.

The better-than-expected NEV sales came amid government push and rising market enthusiasm for the eco-friendly cars. In November last year, China unveiled a development plan for its NEV industry in 2021-2035 that aimed to accelerate the country's transition into an automotive powerhouse.

The proportion of new NEVs in the sales of new vehicles is expected to rise to 20 percent by 2025, and vehicles used in public transportation will be completely electrified by 2035, according to the plan.

Global market research firm International Data Corporation (IDC) has predicted that China's NEV market would grow at a compound annual growth rate of 36.1 percent between 2020 and 2025.

The IDC attributed the surging expansion of China's NEV market to government promotion, transformation and investment from vehicle manufacturers, advancements in battery technology, autonomous vehicle development and more open-minded consumers.