• China's March NEV wholesale deliveries rose 1.2% year-on-year, with record exports making up for a double-digit drop in domestic demand.
• NEV exports more than doubled year-on-year to 371,000 units, while domestic sales fell 18.3%.

China's overall sales of new energy vehicles (NEVs) posted a marginal increase in March, with robust overseas demand acting as a key pillar to offset a double-digit slump in the domestic market.

Wholesale NEV deliveries, which include both domestic sales and exports, stood at 1.252 million units in March. This represents a 1.2% increase from a year earlier and a 63.7% jump from the previous month, according to data released Friday by the China Association of Automobile Manufacturers (CAAM).

The growth brought the NEV share of new car sales to 43.2% in March, up from 42.4% in February, as production and business activities in the auto sector accelerated significantly following the Chinese New Year holiday.

However, weakness in the domestic market was the main drag on overall performance. Domestic NEV sales in China were just 882,000 units in March, down 18.3% year-on-year, despite an 82.4% month-on-month rebound.

Exports remain robust

As demand cools at home, Chinese automakers are continuing their rapid expansion overseas.

In March, NEV exports reached a record 371,000 units, surging 130% year-on-year and climbing 31.6% from the previous month.

Looking at the broader auto market, total wholesale vehicle deliveries in China stood at 2.899 million units in March, edging down 0.6% year-on-year but rebounding sharply by 60.6% month-on-month.

Of that total, overall vehicle exports reached 875,000 units, up 72.7% from a year earlier and 30.2% from the previous month.

Segment breakdown

The wholesale NEV figures published by CAAM encompass both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Wholesale deliveries of BEVs stood at 831,000 units in March, up 3.2% year-on-year and surging 71.69% month-on-month. Meanwhile, BEV production for the month was 818,000 units, slipping 2.3% year-on-year.

BEV exports delivered a stellar performance, reaching 217,000 units — a 110% year-on-year surge and a 24.6% increase from the prior month.

March PHEV sales came in at 421,000 units, falling 2.3% year-on-year but rising 50.36% from the previous month. Production of PHEVs for the month was 413,000 units, down 5.9% year-on-year.

Despite the drop in overall sales, PHEV exports also more than doubled. Exports for the segment reached 153,000 units, up 180% year-on-year and growing 43.1% month-on-month.