(Photo/Xinhua)

In the context of a sluggish auto market, the sales of new-energy vehicles (NEVs) slowed in May, statistics showed.

In May, 104,000 NEVs were sold, up 1.8 percent year-on-year. The growth rate was considered very small compared with that in April at 18.1 percent, according to statistics released by China Association of Automobile Manufacturers.

China is slashing subsidies on NEVs. The move aims to encourage high-quality development of the market. The government has given buyers and carmakers a grace period before the plan takes effect on June 26.

Analysts said that NEVs, though considered as a new hope for the automobile market, are still less competitive against fuel-powered vehicles in terms of the cost.

The constant price cuts of fuel-powered cars as a way to boost sales volume have further narrowed the market space for NEVs.

Currently, some electric cars are sold at discounted prices, but it is unknown how long such preferential prices will last as the new policy will take effect in a few days to come.

New players have come to the arena, making the competition fiercer. In the first quarter, BAIC Group and SAIC Motor experienced low market share while new players such as Geely and Great Wall Motors moved forward in terms of market share, according to research institute WAYS.

However, the main rivals of NEVs are still fuel-powered cars, said Lian Qingfeng, the spokesman of BAIC Motor New Energy Vehicles, adding that if the NEVs sector fails to infiltrate the fuel-powered vehicle market, it will enter an adjustment period and a bright future will be a hard target.

Industry insiders believe that by 2021 or 2022, the NEVs sector will be able to compete fairly with fuel-powered vehicles, and at that time subsidies will be ended entirely.