China’s EV market demonstrates strength amid typically weak demand periods, bolstered by policy support
Published: Jun 03, 2024 09:36 PM
An NEV charging station in Taiyuan, North China’s Shanxi Province Photo: VCG

An NEV charging station in Taiyuan, North China’s Shanxi Province Photo: VCG

Multiple Chinese electric vehicle (EV) enterprises reported an increase in sales during May, reflecting the remarkable performance of nation's EV production and demand amid annual weak consumption period.

Basing on the relatively mild growth of China's overall auto market, the surge of EV sales in May demonstrated its proportion was further expanded, and still has strong momentum in the form of policy support, Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Monday.

China's Ministry of Commerce, Ministry of Finance and five other government departments on April 26, 2024, released detailed plan for auto renewal and trade-in, which offers 7,000 to 10,000 yuan for scrapping old car then buying a new one. The policy was viewed as an effective means to boost the market over April and May, a period with relatively weak demand, observers said.

Chinese auto maker BYD sold a total of 331,800 EVs in May this year, surging by 38.13 percent year-on-year, the company announced on Sunday, with total sales in 2024 surpassing 1.27 million units, up 26.8 percent year-on-year.

Chinese auto giant Geely's EV brand Zeekr delivered a record 18,600 new cars in May, jumping by 115 percent year-on-year, and a 16 percent month-on-month increase, the company confirmed on Saturday.

In a bid to further boost consumption in domestic auto market, China's Ministry of Finance has allocated 6.44 billion yuan to local governments in promoting vehicle renewal and trade-in in 2024, China Media Group reported on Monday.

China's EV industry has better technologies, manufacturing capabilities, and reasonable price with qualified services, all of these play important roles in creating a positive growth cycle for the secotr, said Wu, noting that the market vitality demonstrated the alleged "overcapacity" led by some Western countries against China's EV sector is groundless

Global Times