China NEV Market

On top of state subsidies, Guangdong will offer additional subsidies to consumers who purchase NEVs.

China will accelerate the development of domestic resources, crack down on hoarding and other unfair competition, and push raw material prices to return to rationality as soon as possible, the MIIT spokesman said.

In April, production and sales in China's auto industry continued to face uncertainty, the CPCA said.

China's auto industry is facing higher costs and a lack of consumer momentum, but production and sales of NEVs have continued their rapid growth, the CAAM said.

Demand remains firm as consumers expect EVs to continue to rise in prices, with waiting times generally at 2-3 months, according to a team of local analysts.

At the end of 2020, Beijing had 400,000 NEVs.

February sales of pure electric passenger cars were 246,000 units, up 154.5 percent year-on-year, while sales of plug-in hybrids were 75,000 units, up 338.6 percent year-on-year.

The penetration rate of NEVs in wholesale sales in February was 21.8 percent, up 12.2 percentage points from 9.6 percent in February 2021.

Supporting the consumption of NEVs is part of China's drive for a sustained recovery in consumption.

The CAAM previously said that China's NEV sales are expected to reach 5 million units this year, up 42 percent year-on-year, with a market share expected to exceed 18 percent.