CPCA

At retail, China's NEV penetration rate reached a record 29.7 percent in September.

The models ahead of the Nio ET7 are all traditional internal combustion engine cars, dominated by models from German luxury brands BMW, Mercedes-Benz and Audi.

From January to August, the Tesla Model Y is also the best-selling premium SUV in China with 172,418 retail sales.

Although Tesla encountered brief pressure on parts supply, production was strong after the end of July, Cui Dongshu said.

In early August, some NEV prices rose again, but consumer enthusiasm was not significantly affected, the CPCA said.

From January to July, the Nio ET7 ranked No. 9, up one spot from No. 10 the previous month.

As ownership of conventional ICE vehicles shrinks dramatically, the tax gap will need to be filled by a tax system for EVs, the CPCA said.

The CPCA has raised its forecast for new energy passenger vehicle sales in China by 500,000 units to 6 million units in 2022, with the possibility of further increases in the fourth quarter.

Improved supply and expectations of higher oil prices have kept the NEV market booming with strong order books, the CPCA said.

EV makers including Nio, Tesla and GAC Aion have further increased capacity and are expected to see increased production in the second half of the year, the CPCA said.