In July 2024, China's new energy vehicle market ushered in a milestone moment - the monthly penetration rate exceeded the 50% mark for the first time, reaching 50.84%. This figure not only marks the first time that the sales of new energy vehicles have surpassed those of traditional fuel vehicles, but also indicates that China's auto market is undergoing a profound energy transition. China Exportsemi Web comprehensively analyzes the meaning behind this event from multiple perspectives.
Market performance and data highlights
According to the data released by the Passenger Car Association, in July, the total retail sales of the national passenger car market were 1.729 million units, of which the retail sales of new energy vehicles reached 879,000 units, a year-on-year increase of 37%. This increase in sales has almost doubled the market share of new energy vehicles compared to the same period last year. What's more remarkable is that in the first seven months of this year, the cumulative retail sales of new energy vehicles have reached 4.991 million, a year-on-year increase of 34%.
BYD: The market leader
In this new energy revolution, BYD has become the industry leader with its excellent market performance. In July, BYD's new energy vehicle sales reached 342,400 units, a year-on-year increase of 28.83%, and the monthly sales volume exceeded 300,000 units for the fifth consecutive month. This achievement not only demonstrates BYD's strong strength in technological innovation and market expansion, but also reflects consumers' strong demand for high-quality new energy vehicles.
Figure: BYD He Zhiqi Weibo news that China's new energy terminal penetration rate exceeds 50%
The rise of new EV makers
In addition to BYD, new automakers such as Li Auto, Xpeng Motors, and NIO have also performed well. Li Auto delivered 51,000 new vehicles in July, a year-on-year increase of 49.4%, setting a record high for monthly deliveries. Xpeng Motors and NIO also made steady progress with year-on-year growth of 1% and 43.85% respectively, demonstrating the strong vitality of the new energy vehicle market.
Market competition and challenges
However, the intensification of market competition has also brought challenges to some enterprises. SAIC Motor and GAC Aion's sales in July fell by about 22% year-on-year. This phenomenon reminds us that although the new energy vehicle market as a whole is improving, the competition between enterprises is also becoming increasingly fierce. In the face of fierce market competition, enterprises need to strengthen product research and development, optimize market strategies, and improve service quality to better meet the needs of consumers.
Policy support and market outlook
The rapid development of China's new energy vehicle market is inseparable from the strong support of national policies. From the preferential purchase tax of new energy vehicles to the construction of charging infrastructure, a series of government measures have provided a strong guarantee for the development of the industry. The China Association of Automobile Manufacturers (CAAM) expects China's NEV sales to reach 11.5 million units in 2024, based on the rapid development of China's NEV industry and the continued growth of market demand.
Conclusions and prospects
The penetration rate of China's new energy vehicle market exceeded 50% for the first time, which is not only an affirmation of past achievements, but also an expectation for future development. With the advancement of technology, the improvement of product power and the change of consumer cognition, new energy vehicles are gradually becoming the mainstream choice of the market. Looking ahead, we have reason to believe that China's new energy vehicle market will continue to maintain rapid growth and contribute to the green transformation of the global automotive industry.
