China’s Shift to Electric: PHEVs and EVs Eclipse Gas Cars with Record Market Share in July

In July, China witnessed a surge in the sale of electric vehicles and plug-in hybrids, surpassing the sales of traditional gasoline-fueled cars, according to a Reuters article. The country is recognized as the biggest market for brand new cars globally.

Last month saw a 37% surge in plug-in vehicle sales compared to the same month last year, hitting a new high with over half the market share at 50.7%, as per figures released by the China Passenger Car Association.

Xpeng's latest model, the

Electric vehicles (EVs) and hybrids that can be plugged in, commonly known as NEVs in China's market, have seen significant sales over the last ten years, bolstered by substantial government subsidies. However, there has been a notable surge in sales more recently. Three years ago, NEVs made up a mere 7% of China's total automobile sales, but as Reuters points out, this increase is largely due to substantial investments in the EV production networks, which have strengthened the position of local car manufacturers.

Sales of electric vehicles and plug-in hybrids are on the rise even as the broader Chinese new-car market experiences a slump. As per Reuters, there was a sales surge in July following a 28.6% increase in June. In particular, electric vehicles experienced a 9.9% sales hike in June and an even higher 14.3% in July. Despite this, the total car sales in China dropped by 3.1% the previous month, marking the fourth consecutive month of declining sales.

2024 model of the Zeekr 007

In China's tally, battery-powered cars and hybrid vehicles that can plug in are lumped together. However, differentiating between them is crucial for estimating their total carbon footprint over time. Should plug-in hybrids go without being charged, they'll contribute to the consumption of oil, much like traditional petrol vehicles.

In the first three months of 2024, electric and hybrid vehicles made up 18% of vehicle sales in the United States, as per data from the Energy Information Administration. High import duties are currently a barrier for Chinese car manufacturers, preventing them from introducing their electric and plug-in hybrid models to the U.S. market, a situation that's expected to persist irrespective of the results of the upcoming presidential election.

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