China's NEV market reached 51% penetration rate in July

In July 2024, China's new energy vehicles (NEV) market reached a 51% penetration rate, the highest mark ever and breaking 50% for the first time.

While pure electric (BEV) segment's market share grew from 27.9% to 28% month-over-month, the plug-in hybrid (PHEV), which also includes extended-range electric vehicles (EREV), leaped from 20.5% to 23%.

In July 2024, 1.72 million passenger vehicles were sold, representing a -2.5% MoM and a -2.8% YoY decline.

However, new energy passenger vehicles sales increased to 878k, a 2.8% MoM and 36.8% YoY increase.

Trailing twelve-month (T12M) retail sales, which remove the seasonal effect of the automotive industry, reveal that passenger vehicle sales in China continue to be robust, with approx. 22 million cars sold on a T12M basis in 2024.

In the past 12 months, as of July 2024, 5.55 million BEV and 3.46 million PHEV were sold.

While pure electric vehicles remain to be the largest segment of new energy, T12M sales show that NEV growth is largely driven by PHEV, with a 5.4% MoM growth.

Meanwhile, T12M pure electric vehicle sales grew by 1.1% MoM and T12M internal combustion engine (ICE) vehicle sales continued to shrink by -2.2% MoM.