（Cover image source: Reuters）
On January 26, China Association of Automobile Manufacturers (CAAM) announced that with the trend of overall market-oriented transformation in the new energy vehicle (NEV) industry, NEVs have gradually shifted towards a conventional operational status. It is expected that NEV sales will have a strong start this year, surpassing expectations, and continue to develop steadily.
Pace of NEV Sales Weakened Gradually Due to Policy Impacts
（Image source: CAAM）
According to CAAM’s statistical data, the difference in trend between the NEV and traditional vehicle markets has gradually narrowed since 2017. In 2020, after the effective control of the pandemic, the NEV market presented a reversal trend and gradually reduced its difference with traditional vehicles.
Supply Promotion Effect of NEVs in 2020 was Outstanding
（Image source: CAAM）
According to CAAM’s retail data, with the overall retail sales of one million units in 2018, sales of new NEV models reached 329,800 units, accounting for 33%. In 2019, with the overall sales reaching 1.026 million units, sales of new NEV models reached 183,200 units, accounting for 18% of the total. In 2020, with overall retail sales reaching 1.11 million units, sales of new NEV models reached 480,000 units, accounting for 44% of the total.
Future Demand for NEVs Will Become Increasingly Apparent
According to CAAM’s estimates, the change in NEV sales volume in January this year compared to December last year will substantially decrease. Overall, the sales trend of NEVs is becoming more similar to that of traditional vehicles, with reduced month-to-month fluctuations.
（Image source: CAAM）China Association of Automobile Manufacturers (CAAM) predicts that as new products are less affected by policies, especially the subsidy decline, the development of the new energy vehicle market this year may have different characteristics from last year. The fluctuation between January and December may become smaller under the policy retreat. The impact of demand growth driven by a relatively market-oriented pace on the automobile market will become stronger, forming a stronger market promotion effect.
In 2021, it is expected that the market-oriented transformation of the new energy vehicle market will show a good trend of high start in the beginning of the year and a sustained and gradual rise, which will become increasingly synchronized with the trends of traditional vehicles.
🔗Source: CAAM
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.