China NEV Market

When will China's new energy vehicles become saturated? The latest data suggests that point may still be quite far away.

All three Nio models are among the top three in terms of customer satisfaction with pure electric midsize and large SUVs.

NEV penetration in China has come in at about 20 percent, which Deutsche Bank analyst Edison Yu believes indicates a continued acceleration in the adoption curve.

The forecast is safe because if NEV sales exceed 300,000 units in each of the remaining three months, sales will exceed 3 million units for the year.

The MIIT will work with relevant departments to accelerate coordination and promote the high-quality development of new energy vehicles.

China now has too many NEV companies, which are small and fragmented, and the industry's players need to get bigger and stronger in the future, a senior Chinese official said.

China's NEV sales in August were 321,000 units, up 181.9 percent from a year ago and 18.6 percent from July.

The move is intended to direct car companies to areas with low capacity utilization and to close plants that were built in the past few years but are now in surplus, the report said.

Retail penetration of new energy vehicles in China, their share of total sales of all vehicles, reached 17.1 percent in August.

The global NEV sales are expected to grow 84 percent to 5.96 million units in 2021 and 40 percent to 8.37 million units in 2022, said CITIC Securities.