China produced its 20 millionth new energy vehicle

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As a silver GAC Aion Hyper GT rolled off the production line, China’s 20 millionth new energy vehicle (NEV) was born. The ceremony was held in Guangzhou, China, with representatives from FAW, Dongfeng, SAIC, Changan, BAIC, BYD, Chery, JAC, Great Wall Motors, NIO, XPeng, and Tesla. NEV comprises three types of vehicles: BEVs, PHEVs, and EREVs (range-extender). HEVs and MHEVs don’t belong to NEVs.

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It took China 27 years to produce its 10 millionth NEV in February 2022 since production has begun in 1995. Since then, it only took one year and five months from 10 millionth to 20 millionth NEV, according to the China Association of Automobile Manufacturers.

Driven by NEVs, China’s auto industry is going through a transformation. In the first five months of this year, the domestic market share of independent Chinese auto brands reached 53.1%, surpassing that of foreign auto brands. Furthermore, in the first five months of this year, the production and sales of NEVs in China reached 3.005 million and 2.94 million units, respectively, a year-on-year increase of 45.1% and 46.8%, respectively. The penetration rate of NEVs also reached 27.7%.

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A positive trend is also being observed for NEV sales in China in the 400,000+ yuan (55,200+ USD) market range. Sales have increased from 1.2% in 2017 to 3.4% in 2023. Similarly, sales have increased from 8.5% to 17.5% in the 200,000 – 300,000 yuan (27,600 – 41,400 USD) market range.

Looking ahead

Currently, there are more than 140 Chinese auto brands. Combining market competition with sustainability, NEV is the golden child of the Chinese auto industry. It is not surprising that China will continue to push for global dominance in the NEV market, as the Chinese Ministry of Industry and Information Technology stated in its next steps that it will optimize the policy for supporting the purchase and usage of NEVs.

Source: News CN

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