China NEV Market

Chengdu, famous for being the home of China's panda breeding program, recently issued new regulations on the ride-hailing industry, requiring new vehicles used for ride-hailing to be new energy vehicles.

Nio, Li Auto, and Xpeng have gone public and entered a positive cycle; however, many other new automakers have fallen into production suspensions, unpaid salaries, and bankruptcies, the report said.

The southern Chinese megalopolis of Shenzhen has the largest number of new energy vehicles in China for the sixth consecutive year, with 480,000 vehicles, or about 14 percent of the city's motor vehicle fleet, by the end of 2020.

Anhui accounted for about 7 percent of China's NEV production in the first half of the year.

Car companies including Nio, Xpeng Motors, Li Auto, Tesla China, and BYD have accumulated a lot of new energy credits last year, and now they can start trading them.

China's new energy vehicle (NEV) sales from January to June were 1.206 million units, up 2 times year-over-year and 92.3 percent from the same period in 2019.

In a research note released Thursday, CITIC Securities raised its China 2021 NEV sales forecast to 2.83 million units from 2.49 million units, implying a 121 percent increase from 2020.

Shanghai aims to further increase the share of electric vehicles and fuel-cell vehicles, promote the transformation of car companies into emerging industries and nurture auto parts companies with tens of billions yuan in sales.

That's up 3 percentage points from May and up 7 percentage points from 8 percent in January. The ratio was 11 percent in the first half of this year, an increase of 5 percentage points from 2020.