The market penetration rate is a measure of what share of the whole potential market a product or a business has achieved.
Cui Dongshu,secretary-general of the China Passenger Car Association(CPCA),told the Global Times that the nearly 50 percent penetration rate in the NEV market is highly significant."It shows that NEVs have become a major force in China's auto market.It also reflects growing consumer recognition of green mobility."
Wu Shuocheng,a veteran auto industry analyst,told the Global Times on Monday that the growing penetration rate of NEVs reflects a fundamental shift in consumer acceptance."What we're seeing is the electrification of the market transitioning from being primarily policy-driven to increasingly product-and market-driven,"he said.
Such a consumer acceptance of NEV can be also seen from the July sales figures of automakers,highlighting the continued strong momentum of China's NEV market.
According to the latest report by China Passenger Car Association(CPCA),NEVs accounted for 53.3 percent of total domestic passenger car retail sales in June,up 4.8 percentage points from a year earlier.Among domestic retail sales that month,NEVs made up 75.4 percent of sales within Chinese self-owned brands and 30.3 percent among luxury vehicles.
Among domestic brands,BYD remained the front runner in July with 344,300 cars sold.While year-on-year growth was modest at 0.6 percent,the company's cumulative sales this year are nearing 2.5 million units,underscoring its scale advantage.Overseas sales of BYD passenger cars and pick-ups reached 80,200 units in July,up 159.5 percent year-on-year,highlighting its accelerating global push.
SAIC Motor sold 338,000 vehicles in July,up 34.2 percent year-on-year,its seventh consecutive month of growth.Year-to-date wholesale volume reached 2.39 million units,up 15 percent.The company's robust performance was driven by its self-owned and NEV segments:sales of self-owned brands rose 39.4 percent to 214,000 units,while NEV sales surged 64.9 percent to 117,000 units in July.
Geely Holding Group sold 237,700 vehicles in July,up 58 percent year-on-year,its 11th consecutive month above the 200,000 unit mark.New-energy models stood out with 130,100 units sold,a 120 percent surge,pushing NEV penetration to 55 percent,according to the company's announcement.
Emerging electric vehicle(EV)makers are also ramping up efforts to expand market share.XPeng Motors posted record monthly deliveries in July,selling 36,700 vehicles-up 229 percent year-on-year and 6 percent month-on-month.So far this year,the company has delivered 233,900 units,a surge of 270 percent year-on-year,the company announced.
Xiaomi Auto emerged as a dark horse among China's new EV players.Boosted by strong demand for its first sport utility vehicle YU7,Xiaomi's monthly sales exceeded 30,000 units for the first time in July,Lei Jun,founder,chairman and CEO of Xiaomi,announced on his Sina Weibo account.The company announced that the YU7 received more than 240,000 pre-orders within 18 hours of launch,drawing significantly more market attention than the debut model SU7.The second phase of Xiaomi's EV factory,completed in mid-June,began trial production in July,easing earlier capacity constraints.
Wu noted that electric and fuel-powered vehicles are essentially splitting the market."EVs have achieved meaningful penetration across a wide range of segments-including commercial vehicles-which signals that they are moving into the mainstream,"Wu said.
In June,China exported 198,000 new-energy passenger vehicles,up 116.6 percent year-on-year,accounting for 41.1 percent of total passenger car exports,according to the CPCA.