China's NEV production, sales surpass 12m each, leading globally in 2024 for 10th year

Visitors are seen at the exhibition area of Chinese NEV manufacturer BYD during the 2024 Beijing International Automotive Exhibition in Beijing, capital of China, May 4, 2024. The exhibition closed on Saturday. (Photo/Xinhua)

China's new-energy vehicle (NEV) output and sales in 2024 each exceeded 12 million, topping global rankings for the 10th consecutive year, according to data released by the China Association of Automobile Manufacturers (CAAM) on Monday.

In 2024, NEV production and sales reached 12.89 million and 12.87 million units, up 34.4 percent and 35.5 percent year-on-year, with sales accounting for 40.9 percent of total new car sales, up 9.3 percentage points from the previous year.

NEV exports rose 6.7 percent to 1.28 million, maintaining global leadership, according to the CAAM." Last year, the growth in China's auto market was largely driven by increased sales of NEVs," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Monday.

"China's NEV technology is highly advanced, offering a wide range of price options from tens of thousands to over 1 million yuan. NEVs' charging costs are lower than conventional fuel expenses, making them more cost-effective than traditional fuel cars," he said. Wu noted that incentive policies, such as government subsidies for trade-ins, played a significant role in encouraging many, particularly fuel car owners, to switch to NEVs. "Additionally, policies like Shanghai authorities to grant free car plates for first-time NEV buyers prompted early purchases, as consumers hurried to seize the benefits amid concerns about potential policy changes," he explained.

Chinese-branded passenger car sales reached 17.97 million units, up 23.1 percent year-on-year, with their market share rising by 9.2 percentage points to 65.2 percent.

In recent years, domestic car brands have improved their image and reputation, gaining growing popularity among Chinese consumers. The strong growth in NEV consumption, driven largely by domestic brands, known for affordability and quality, has boosted their market share, Wu said.

In 2024, China's total auto production and sales saw steady growth, with production reaching 31.28 million and sales reaching 31.44 million, up 3.7 percent and 4.5 percent year-on-year, setting new records and exceeding 30 million units for another year, according to the association.

The CAAM has forecast that total auto sales will reach 32.9 million units in 2025, marking a year-on-year increase of 4.7 percent. Sales of NEVs are expected to hit 16 million units, up 24.4 percent from the previous year.

"In 2025, I believe domestic sales of NEVs will continue to grow steadily. Despite external challenges and political factors, actively expanding NEV exports will remain a key objective," Wu said.