China NEV Market

This year will be the historical inflection point at which the driving force behind the development of China's NEV industry changes from policy to market forces.

In the fourth quarter, Chinese automotive consumer demand remained stable, but uncertainty remained on the supply side, the CAAM said.

The extra quota for new small cars in Guangzhou will increase from 30,000 to 80,000, and Shenzhen will remove the requirement that consumers who buy NEVs pay social security locally.

Xi'an aims to become a top-tier NEV base in China by 2025.

JPMorgan is bullish on the prospects for China's NEV industry, which coincides with the optimism of Chinese investors, one executive said.

As Nio's William Li puts it, once users embrace electric vehicles, they will become widespread very quickly.

The secretary-general of the CPCA said that with the supply of chips still uncertain in 2022, traditional carmakers will prioritize their limited resources for NEV models.

Referring to the S-shaped growth curve, global vehicle electrification has broken through the tipping point and entered a period of steep growth, CICC said.

China will promote NEVs and gradually reduce the share of traditional fuel vehicles in new vehicle production and sales and vehicle ownership.

The MIIT official said that China will coordinate the study of policy measures for NEVs and maintain the continuity and stability of support policies for all segments.