New energy vehicles will dominate the world’s largest auto market in about ten years. This is what two executives from major Chinese electric car companies (Namely BYD & NIO) predicted. As a fan of electric vehicles I share their view and enthusiasm for the market size.
New energy vehicles refer to battery-powered and hybrid cars. The category accounted for more than 10% of new car sales in China in March. They grew to 11.4% in May, said Wang Chuanfu (Founder of BYD)
He forecast that the penetration rate for electric vehicles would surge to more than 70% in 2030. That’s according to a transcript the company provided of his remarks at the China Auto Chongqing Summit held June 12 and 13.
William Li (Founder and CEO of electric car company Nio) was even more optimistic. He predicted that so-called smart electric cars would account for 90% of new car sales in 2030 (according to Chinese media reports)
Nio’s deliveries of 6,711 cars in May fell from 7,102 in April. One bad month doesn’t mean much. As we know there is a chip shortage at the moment so this could have many reasons.
In May BYD said its new energy passenger car sales rose 23% from the prior month to 31,681 vehicles. Half of those were powered only by batteries.
The company’s Han sedan ranks among the five best-selling new energy vehicles sold in China. It’s just behind Tesla’s Model 3 and Model Y for the first five months of the year, according to the China Passenger Car Association. As we know Tesla was facing some recent issues in China so personally It would not surprise me if BYD will take the lead in the near future.
In first place is a budget electric car: the Wuling Hongguang Mini. You might have heard about it. It only costs about $4500 and is developed under a General Motors’ joint venture in China. I doubt we will ever see it outside of china but I am happy to see that its gaining so much traction.
I will keep you updated about china’s EV sales here on this site. I’m very curious if we can hit that goal of 70% EV by 2030. It’s ambitious but doable.