Half of all vehicles sold in China in July were new energy vehicles (electric cars or plug-in hybrids). The Asian country is no longer just the world’s largest vehicle manufacturer and the world’s largest market: It has also surpassed everyone in the adoption of plug-in cars.
Compared to July registrations in Spain, CPCA (China Passenger Car Manufacturers Association) data shows an increase of 37% in July compared to the same month in 2023. The result: a 50.7% of registrationsIn Spain, sales fell by 3.7% in July over the same period, and are barely 8.9% of sales. We are not a good example, but they also far exceed the 20% of the European total or the 18% in the United States (accumulated figures for the year in the first half of the year in these cases).
Is all lost? No. Three years ago, plug-in vehicle sales accounted for just 7% of total vehicle sales in China. How did they do it? In this video and this article we analyze the policies that have led to these figures:
These sales figures have led some brands in the local electric car industry, such as BYD and Li Auto, to set monthly sales records. However, the total number of car registrations in China has fallen by 3.1%. This is the fourth consecutive month in which this has happened, due to lower consumer confidence, largely due to the long-lasting crisis in the real estate market.
The state response was swift, and China’s State Planning Agency announced at the end of July that cash subsidies for vehicle purchases would be doubled (up to 20,000 yuan, about 2,500 euros) and would be retroactive to April, when they were first introduced. In cities with restrictions, they have also announced that they would expand the number of licenses for electric cars. An example of this is Beijing, where this quota system has been in place since 2011.
The slowdown in overall sales may be due to the price war, which has eased in recent months as automakers seek to protect their margins. Especially now that European tariffs are set to start to be felt in exports, which fell in July compared to the previous month.
