China NEV Market

A new round of policies to boost auto consumption in rural areas will be released soon, possibly as soon as this month, Cailian reported.

Compared to the NEV market, China's overall auto market performed worse in April, with sales down 47.1 percent from March.

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.