EV Surge: China Leads the World in Electric Vehicle Adoption

In July, half of all vehicles sold in China were new pure electric vehicles or plug-in hybrids, a significant growth. Despite overall domestic car sales declining, the boom in new energy vehicles highlights China's lead in EV adoption, supported by increased subsidies and relaxed purchase restrictions.

In a landmark development, half of all vehicles sold in China in July were either pure electric vehicles or plug-in hybrids, according to industry data. This milestone highlights the significant progress made by the world's largest auto market in embracing electric vehicle (EV) technology, far outpacing Western markets.

Sales of new energy vehicles (NEVs) surged by 37% last month compared to the same period a year ago, capturing a record 50.7% of total car sales, as per China Passenger Car Association. This marks a sharp rise from the 28.6% growth observed in June. Sales of pure electric vehicles alone jumped 14.3% in July, accelerating from June's 9.9% growth.

Although the overall domestic car market experienced a decline of 3.1% in July, marking the fourth consecutive monthly drop due to weak consumer confidence amid economic slowdowns, the rise in NEV sales has led the state planning agency to double cash subsidies for vehicle purchases. Additionally, municipalities like Beijing have eased restrictions on car purchases to further stimulate the market.

(With inputs from agencies.)