China's NEV sales set monthly record in October, boosted by policy support

In October, China's new-energy vehicle (NEV) sales reached 1.43 million units, up 49.6 percent year-on-year, setting a new one-month sales record. From January to October, cumulative sales hit 9.75 million, a 33.9 percent rise, according to data from the China Association of Automobile Manufacturers (CAAM) on Monday.

The government's trade-in policies have significantly boosted vehicle sales since October. Promotion events taking place nationwide, coupled with the intensive rollout of new models by domestic car producers, have led to a sustained surge in vehicle consumption, according to the CAAM.

Total vehicle sales hit 3.053 million units in October, up 8.7 percent from September and 7 percent year-on-year, the CAAM's data showed.

Among the highlights, the passenger vehicle market continued to improve under the influence of multiple positive factors, with both domestic sales and exports of NEVs continuing robust growth.

NEV exports continued a steady upward trend in October, with 128,000 units exported, up 16 percent month-on-month and 3.6 percent year-on-year. From January to October, cumulative NEV exports totaled 1.058 million units, up 6.3 percent year-on-year, according to the CAAM.

Despite recent external disruptions, Chinese NEVs are gaining steady recognition in overseas markets. Exports of self-owned plug-in hybrids are surging, especially in developing countries, signaling a promising future, the China Passenger Car Association said earlier.

China's NEV makers are rapidly enhancing their global competitiveness. China's biggest electric vehicle maker BYD posted higher revenue for the third quarter this year than Tesla for the first time.

The Chinese government has vigorously promoted vehicle trade-in subsidies this year, including moves to encourage the replacement of heavily polluting vehicles with NEVs or energy-efficient vehicles to stimulate automobile consumption, support economic recovery, and promote the green transition.

Additionally, the central government's recent incremental policy packages have begun to show positive effects on boosting consumer confidence and providing momentum for the economic recovery, with companies stepping up their production rates and business confidence rising.

The CAAM anticipates that as policy effects accumulate and automakers and dealers gear up for a year-end push, car consumption is expected to keep rising in the final two months of the year. It also called on the government to offer improved trade-in policies next year and release detailed implementation guidelines early to further enhance policy effects.