Biz / Auto

Lower estimate for new-energy vehicle sales

Hu Yumo
Sales in the Chinese market are estimated to reach around 1.1 million units this year, according to data from industry association after earlier estimates of up to 1.5 million.
Hu Yumo

Sales of new-energy vehicles in Chinese market are estimated to reach around 1.1 million units this year, according to Xu Haidong, vice chief engineer of the China Association of Automobile Manufacturers (CAAM).

Earlier, CAAM had estimated sales in 2020 to be between 1.2 million and 1.5 million. 

Last year’s figure was 1.21 million, or 4.68 percent of the total vehicle sales of 25.77 million.

Chinese auto brands are aiming to make great progress in the field of new-energy vehicles, Xu said. China is expected to develop its own new-energy vehicle brand and automakers are striving for progress in terms of upgraded sport-utility vehicles and brand value.

In 2015, China announced plans to end subsidies this year, but said in March it would extend them to 2022. It has released a number of policies to minimize the impact of COVID-19 and promote sales.

Xu said that these policies had stabilized the confidence of new-energy vehicle enterprises, allowing them to use the extra two years to reduce manufacturing costs of new-energy vehicles and their dependence on government subsidies.

Local governments also released a number of policies to boost up car sales. The association said these policies can support local car dealerships to get back to work and benefit the automotive aftermarket. 

New-energy vehicle sales will also drive the construction of charging infrastructure, Xu said, and a safe and convenient charging network will lay the foundation for the future development of new-energy vehicles. 

A large number of auto parts suppliers of new-energy vehicles across the country has also been cultivated, he said, with capabilities in terms of batteries, electric motors and electronic control unit related technologies and products. Their continued development can better support the development of China’s new-energy vehicle industry. 

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