The manufacturing line of a NEV factory in Southwest China's Chongqing Municipality Photo: VCG

Retail sales of new-energy vehicles (NEVs) in China hit 556,000 units in October, up 75.2 percent year-on-year, continuing to display strong growth momentum despite sporadic COVID-19 flare-ups, data from the China Passenger Car Association (CPCA) showed on Tuesday.

The CPCA noted that supply improvement coupled with oil price hikes have boosted the domestic NEV market, driving electric vehicle sales upwards.

In the first 10 months this year, retail sales of new-energy vehicles recorded 4.43 million units, up 107.5 percent year-on-year. 

Chinese made NEVs are increasingly going global on the back of rising international recognition. In October, NEV exports totaled 103,000 units, with 54,504 units from Tesla China and 18,688 from SAIC.

Due to the large price difference between oil and electricity, combined with the help of national energy structure adjustment policy, sales of NEVs have surged, and the process of replacing fuel-fired vehicles has accelerated. 

In 2022, NEV sales are expected to reach 6.5 million and exceed 8.4 million in 2023, the association said.

The continuous improvement of logistics and supply chain as well as a significant relief linked to a worldwide chip supply shortage has stabilized the growth of the domestic car market, but the disruption caused by the pandemic still needs to be monitored.

In October, retail sales of China's passenger cars reached 1.84 million units, a year-on-year increase of 7.3 percent, and passenger car exports amounted to 270,000 units, up 42 percent year-on-year. The export of domestic brands to the emerging markets has achieved a noteworthy breakthrough, reaching 194,000 units, an increase of 46 percent compared with last year.

As the autumn harvest has been completed, the enthusiasm for purchasing cars in rural areas will increase and the NEV market will heat up. At the same time, some high-end new-energy vehicle makers reduced car prices in October, which will attract more buyers in the coming months.

As the international oil price remains high due to the OPEC production cuts, coupled with the cooling of the world economy caused by US interest rate hikes, China's export market may decelerate to some extent, the association said.

Although some brands in overseas markets said part shortages and energy supply disruptions will affect their overall productions, the Chinese market will maintain stable production, the CPCA said.

Global Times