China's electric and hybrid vehicle sales jump 40.7% in 2024

BEIJING: Sales of electric and hybrid vehicles jumped more than 40 percent in China last year, a trade association said on Thursday, as demand for new energy autos continues to surge.

“From January to December 2024, the retail sales volume (of new energy vehicles) reached 10.899 million units, a year-on-year increase of 40.7 percent,” the China Passenger Car Association (CPCA) said.

The Chinese electric vehicle market has witnessed explosive growth in recent years, driven in part by generous subsidies from Beijing.

New energy vehicles (NEVs) accounted for nearly half — 47.6 percent — of all retail sales last year, the CPCA said.

Such vehicle sales surpassed 1.3 million units in December, CPCA data showed, up 37.5 percent year-on-year and representing the fifth consecutive month of sales of more than one million.

China, the world’s largest automotive market, has seen fierce competition among domestic car manufacturers as a consumption slowdown fuels a price war that is weighing on profitability.

BYD has emerged as a clear leader in the Chinese market. The Shenzhen-based firm sold more than four million vehicles globally in 2024.

Foreign automotive giants, on the other hand, are battling against slumping sales in the world’s second-largest economy.