In China sales of e-cars outpace those of ICE 

Sales of electrified cars have passed a new milestone in China. The share of electric and plug-in hybrid vehicles outperformed conventional combustion-engine-only cars last month. These represented 50.8% of all passenger car sales. The historic shift underscores China’s status as the world’s largest car market, where the number of electrified vehicles keeps increasing rapidly.

According to the China Passenger Car Association, 879,000 electrified vehicles found a new owner. The sales figures mark a 37% year-on-year increase and a 3% rise from June.

BYD on top

These results also surpass the earlier estimate of 860,000 units. Cumulatively, China’s sales of cars with electric motors (New Energy Vehicles or NEV) for the year totaled 4.991 million units, which is 34% higher than the previous year.

BYD is taking the national lead, having recently surpassed Tesla as the world’s largest electric car manufacturer. In its home country, the brand benefits from its plug-in hybrid offering. Note that the monthly sales results are preliminary and must be confirmed later.

Overall, China’s retail sales of passenger vehicles in July stood at 1.729 million units, a 2% decrease year-on-year from June. Cumulative sales for the year are up 2% at 11.568 million units.

Next milestone: full-year dominance

That NEVs accounted for 50.84% of the total retail car sales in July is a first in China’s automotive history. Wang Chuanfu, CEO of BYD, had predicted this milestone would be reached within three months back in March, a nearly spot-on forecast. It remains to be seen whether the market can uphold the high penetration for the rest of the year.

According to the Economist Intelligence Unit, a full-year majority for NEV isn’t expected before 2028, but the market seems set to reach that next milestone sooner. Currently, 43.1% of sales are NEVs for 2024 so far.

China’s NEV market includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and extended-range electric vehicles (EVs), with the latter category using a gasoline engine as a generator. Fuel cell electric vehicles (FCEVs) are also part of the NEV category but represent a minimal market share.