JPMorgan is bullish on the prospects for China's NEV industry, which coincides with the optimism of Chinese investors, one executive said.
Those at the helm of China's new car-making powerhouse are very optimistic about the industry they're in, and some Wall Street banks seem to be, too.
From a long-term perspective, JPMorgan Chase predicts China's new energy vehicle (NEV) penetration will reach 35 percent by 2025, Huang Jian, a managing director at the bank and president of Global Corporate Banking China, said today.
Huang made the remarks at a forum at the 4th China International Import Expo. NEV penetration refers to their share of all new vehicle sales.
JPMorgan is bullish on the current growth prospects of China's NEV industry, which coincides with Chinese investors' optimism about the market, he said, according to Chinanews.com.
"Our equity research team learned in a recent study that most investors expect China to sell more than 4.5 million pure electric vehicles in 2022, higher than JP Morgan's previous forecast of 4 million," he said.
(Image credit: Chinanews.com)
According to China's "New Energy Vehicle Industry Development Plan (2021-2035)" released last year, the country aims to achieve a 20 percent NEV penetration rate by 2025.
Notably, players in the industry generally expect China to meet that goal sooner.
XPeng Motors CEO He Xiaopeng said at the Reuters Events Automotive Summit on October 19 that NEVs are expected to account for more than 35 percent of new vehicle sales in China by 2025.
"Overall sales of NEVs this year are slightly above our expectations. Given the current sales momentum, I am more confident that the penetration of NEVs will grow in 2025," he stated.
William Li, founder, chairman, and CEO of NIO, said at the 2021 World New Energy Vehicle Congress in southern China's Hainan Province on September 16 that China's NEV penetration rate could reach 20 percent next year.
Li believes that the national industry plan is prudent in its goals, and from the perspective of NEV promotion, once accepted by users, the penetration will be very fast.
Cui Dongshu, secretary-general of the China Passenger Car Association, said in an article published Tuesday that the penetration rate of NEVs in China is expected to exceed 15 percent this year, and the ratio is expected to exceed 20 percent next year.
That's an upward revision from his previous expectations, which Cui predicted in an article in early August that NEV penetration in China is expected to reach 13 percent this year and exceed 25 percent by 2025.
Expert expects China's NEV penetration to exceed 20% by 2022
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