China’s EV market is recovering slowly

In China, 55,829 battery-electric cars and 14,370 plug-in hybrids from local production were sold in May. The sales figures for so-called New Energy Vehicles were thus 25.8 per cent lower than in the same month last year, but 19.5 per cent higher than in April 2020.

This is according to statistical data from the China Passenger Car Association (CPCA). The decline in sales of electrified vehicles must be seen in the context of a general decline in passenger car sales in China due to the pandemic. Of the BEVs sold in May, 54 per cent were China’s brands, and the remaining 46 per cent were foreign brands and joint ventures. China’s share of the PHEV market was around 30 per cent.

The best-selling electrified model in May was the Tesla Model 3: CPCA statistics show 11,095 units of the locally manufactured American electric sedan sold in China. That is a good three times as many as in April (3,635). However, sales of the Model 3 in April were also down sharply on March (10,160). Tesla itself probably contributed to the new high with a price reduction for the Model 3 Standard Range announced at the end of April. Following an amendment to the NEV subsidy rates, Model 3 would have been removed from the Chinese subsidy list at its original price of 323,800 yuan. By lowering the cost below the newly defined limit of 300,000 yuan, however, the electric sedan in its standard range now remains eligible for subsidies. By the way, Tesla has also reduced the price of the long-range version of the Model 3 by 20,000 Yuan.

Meanwhile, the health crisis from the spring continues to make itself felt among China’s major electric vehicle manufacturers. Local hero BYD sold 11,325 electric cars and plug-in hybrids in China last month, a full 48.3 per cent less than in the same month the previous year and also 12.9 per cent less than in April. In the same period, Geely sold 6,101 electrified vehicles – without comparison value from the previous year. However, it is a fact that the Geely Group is facing a 25 per cent decline in total car sales between January and May due to the coronavirus.

Meanwhile, good news comes from Nio: The Chinese electric car manufacturer delivered 3,436 electric cars on its home market in May, more than in any month before. According to the company’s figures, this corresponds to a year-on-year growth of 215.5 per cent. Specifically, Nio delivered 2,685 units of the ES6 and 751 units of the ES8.

autonews.gasgoo.com (sales numbers), caixinglobal.com (Tesla Model 3), autonews.gasgoo.com (BYD), autonews.gasgoo.com (Geely), ir.nio.com (Nio)