For the first time, hybrid and electric vehicles accounted for over half of all car sales in China during July, marking a significant achievement in this highly competitive market, according to figures released on Thursday by a professional association.
Hybrid and Electric Vehicle Sales Surge
Last month, 945,000 hybrid models were sold in China, representing a year-on-year increase of 27.6%, as reported by the China Passenger Car Association (CPCA).
Additionally, 505,000 fully electric cars were sold, showing a slight increase of 0.9% compared to the same period last year.
Exceeding the 50% Threshold
These hybrid and electric models collectively accounted for 51.1% of total car sales in China in July, a historic milestone. In comparison, the rate was 36.1% a year ago during the same period.
Rise of Chinese Electric Car Brands
In recent years, dozens of innovative local Chinese electric car brands have emerged, posing a challenge to foreign automakers who are struggling to adapt to the rapidly changing market.
BYD Leads the Charge
In July, Chinese automaker BYD once again dominated the electric vehicle market in its home country, selling nearly 246,000 cars.
This figure far surpassed the sales of American competitor Tesla, which sold over 74,000 cars despite having a massive factory in Shanghai.
BYD’s Global Expansion
BYD, which markets its cars in about 50 countries, including Europe, is part of a growing number of Chinese automakers accelerating their expansion into international markets.
The group surpassed Tesla as the world’s largest seller of electric vehicles in the fourth quarter of 2023.
Economic Slowdown and Price Wars
The Chinese electric vehicle market has experienced rapid development in recent years, fueled in part by purchase subsidies.
However, the current economic slowdown is affecting consumer spending, leading to price wars among automakers, which are impacting their profitability.