Sales of new energy vehicles (NEVs) , which include electric, plug-in hybrid and hydrogen fuel-cell vehicles, will maintain their strong growth in China that boost share of electric cars accounting for over 35% of total passenger car sales in China next year, Fitch Ratings predicts.
Electric cars will account for over 35% of sales of passenger vehicles next year in mainland China, up from an estimated 27% share this year and 15% in 2021, according to the credit rating agency.
This predication base on the trend that driver of petrol cars changes their habits and start buying electric cars.
“As more new brands enter the electric vehicle market, next year will be a year of fierce competition.,” said Yang Jing, director of Asia-Pacific corporate research.
Fitch predicted the growth of China’s overall passenger vehicle market might experience a slight dip in 2023 as sales of petrol cars drop sharply. However, the passenger NEV market will sell more than 30% annual growth because demand will continue to remain strong.
China is the world’s largest EV market, with sales of EVs growing rapidly in recent years. According to the China Association of Automobile Manufacturers, China sold 26.3 million cars in 2021, up 3.8% year-over-year. Among them, 3.5 million units, or 13.4%, were EVs, almost double the sales a year earlier.
Data from China Passenger Car Association showed that U.S. electric vehicle maker Tesla Inc sold 335,400 China-made vehicles in the country between January and October, up 53.5% year-over-year.
As more new brands enter and traditional car makers shift to its electrification progress, China’s EV market will be increasingly competitive.
China’s top 10 carmakers, including BYD, SAIC, Great Wall Motor, Geely, have all invested in NEVs. BYD, China’s largest electric car maker, announced in April it had stopped producing combustion engine vehicles and would only make electric and plug-in hybrid cars.