China’s annual production of new energy vehicles (NEVs) has surpassed the 10 million milestone for the first time, marking a significant leap in the nation’s journey towards a greener future.
At a celebratory ceremony in Wuhan, central China’s Hubei Province, a pink Voyah Zhiyin new energy SUV rolled off the production line. Simultaneously, videos showcasing NEVs from various companies being manufactured were displayed, symbolizing the robust growth and innovation within the Chinese mainland’s auto industry.
Analysts hail this achievement as a historic moment, not only for the transformation of China’s automotive sector but also for the global shift towards sustainable transportation.
“Developing the new energy industry and advancing green, low-carbon transitions are shared goals for countries worldwide,” said Xin Guobin, vice minister of the Ministry of Industry and Information Technology, emphasizing the crucial role NEVs play in global efforts to combat climate change and protect the environment.
Fu Bingfeng, executive vice president and secretary-general of the China Association of Automobile Manufacturers (CAAM), described the milestone as a testament to China’s expanding contribution to global green development and carbon reduction.
According to official data, the NEV market share in China was just above 1 percent in 2015 but has since surged thanks to the expedited green transition of the Chinese economy. In July this year, NEVs made history by surpassing fuel-powered vehicles in market share for the first time, with retail sales nationwide hitting 878,000 units—accounting for 51.1 percent of the domestic market.
Promoting a green shift in the auto industry is the trend moving forward. China’s development of the NEV industry aligns with the growing demand in the global automotive market.
A report from the International Energy Agency showed that electric cars—including both battery electric and plug-in hybrid models—accounted for around 18 percent of all cars sold worldwide in 2023, up from 14 percent in 2022 and only 2 percent in 2018. “These trends indicate that growth remains robust as electric car markets mature,” the report stated.
Notably, China’s NEV industry primarily caters to the domestic market, with exports constituting only a small portion of total production. While approximately 9.59 million NEVs were manufactured in the country last year, only about 12 percent were exported. Data from the CAAM shows that China’s domestic sales of NEVs reached 8.692 million units in the first 10 months of this year, more than eight times the export volume during the same period. The domestic sales volume saw a year-on-year increase of 38.3 percent, with a growth rate over 30 percentage points higher than that of exports.
International car companies are also recognizing China’s pivotal role in the NEV industry. Companies such as Tesla, BMW, and Toyota have been actively expanding their production of NEVs in China. For example, Toyota has established one of its largest overseas testing and R&D centers in Changshu, east China’s Jiangsu Province, and recently opened an advanced technology research center in Shanghai. Tesla broke ground in May on a mega factory in Shanghai to manufacture its energy-storage battery Megapacks.
As China continues to drive forward in its green transition, the milestone of producing over 10 million NEVs annually underscores the nation’s commitment to sustainable development and its influential position in the global automotive landscape.
Reference(s):
cgtn.com
