New energy vehicles accounted for the majority of car sales in September for the third consecutive month. Last month’s retail penetration rate was 53.3%. However, more solid numbers have emerged: 3 out of 4 Chinese branded cars currently sold are NEVs.
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According to data from the China Passenger Vehicle Association, sales of new energy vehicles totaled 1.123 million units. NEV sales increased by 50.9% year-on-year compared to September last year.
However, the figures for the overall car market show a very different trend. Sales volume in September was 2,109,000 units, an increase of only 4.5% compared to the same month last year. This is the second month of increase, following a five-month period of decline.
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This figure shows that sales of ICE vehicles are decreasing in China, and the increase in sales is mainly due to increased sales of NEVs, with NEV sales eating into ICE sales.
The NEV penetration rate was 53.3%, an increase of 16.4 points compared to last September’s NEV penetration rate of 36.9%.
According to Fast Technology, private label penetration is 74.9%. This means that only one in four such cars is still an ICE.
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In September, traditional Chinese manufacturers controlled 73% of the NEV market, an increase of 1 percentage point from last year. The biggest loser is joint venture brand NEV, which currently controls only 3.4% of the market, down 2.3 percentage points from September 2023.
In contrast, the main gains were made by new entrants, who now have a share of 16.5%, an increase of 2.6 percentage points year-on-year. Tesla also gained 0.6 percentage points and now has a market share of 6.4%.
Premium brand vehicle sales appear to be the last area where ICE vehicles still have a significant share. The NEV penetration rate in this segment in China is 33.5%.
Editor’s note:
The latest figures show that 2024 could still be the first year in which NEVs account for more than 50% of car sales in China. This also helps explain how desperate the plight of joint ventures in China is becoming. Without a competitive NEV model, there is no hope of surviving in the Chinese market.
Source: Fast Technology, Wall Street Sights
