While the UK’s plug-in electric vehicle market grew by 74% in 2021, growth of the same segment in the world’s largest car market more than doubled that rate. Official figures from the Chinese automotive industry reveal that last year sales of plug-in hybrids and EVs saw a staggering 158% increase on 2020. But what’s behind the numbers and who were the main winners and losers? Let’s start with the data.
- In China, total sales of new energy vehicles (NEVs) – battery-electric vehicles and plug-in hybrids – topped 3.52 million units, just over half the global total
- One car, the Wuling Mini EV, accounted for around 12% of those sales alone
- BYD, the market leader in electrified vehicles, sold over 600,000 NEVs
- NEVs made up 13.4% of all car sales in China
For Autocar Business webinars and podcasts, visit Autocar Business Insight
That last figure is a significant one for the Chinese authorities since their target for NEVs to make up 20% of all new car sales by 2025 was within touching distance in both November and December and, if achieved over a full year in 2022, would mean the target was reached three years ahead of schedule. In fact, it’s important to recognise that 2021’s astonishing figures have their roots in more than a decade of investment and subsidies that have developed a home-grown industry of car makers, battery suppliers and infrastructure totalling in excess of £50 billion.
But 2021 sales were less a result of subsidies than in any previous year because, although the Chinese government delayed their planned EV grant removal in 2020, it was still cut by a further 30% last year and now makes up only a tiny percentage of the purchase price. Instead, Chinese consumers have been cashing in on a perfect storm of EV excitement, numberplate restrictions in the largest cities for ICE vehicles, an increasingly diverse and capable choice of products, and home-grown brands that for the first time are considered on a par with overseas competitors.
“Chinese consumers are increasingly more open to new energy vehicles from several aspects, not only because EVs have reached a maturity in terms of technology and convenience that is on par with ICE vehicles, but also because new EV brands now offer service that exceeds that of existing premium and luxury brands,” said Ashley Sutcliffe, PR director at the Geely Group, which launched its own premium EV brand, Zeekr, late last year.
Zeekr is just one of many EV offshoots from established Chinese car makers – also including AVATR, Aion, Voyah and Ora – that has or is about to launch. That Ora is entering the UK market this year is a sign of the Chinese car industry's blossoming confidence.
Add your comment