Sales of New Energy Vehicles in China - 2016

Sales of New Energy Vehicles in China - 2016

After back-to-back very impressive gains the past two years, China expects even further growth of the New Energy Vehicle (all-electric and plug-in hybrid vehicle) market this year.

After record a 507,000 plug-in vehicles sold in 2016 (including more than 350,000 cars and 115,700 all-electric buses), the new goal is 800,000 this year.

The 58% improvement is to hopefully be achieved despite a 20% cut of central government subsidies. Clearly the government is hoping the majoring of the EV market and many new offerings will make up the demand shortfall caused by curtailing incentives.

Xu Yanhua, a vice secretary of CAAM (China Association of Automobile Manufacturers), said to Economic Information Daily that passenger EVs would be powering the market in 2017, with an estimated 70% demand surge during the year.

"In 2017, demand for long-range pure electric car will rise further, charging facilities will continue to maintain rapid growth momentum, and following an expansion in scale, manufacturing costs will also be further reduced," Xu told the state-run publication (via Reuters).

In 2016, the targeted volume was 700,000.  Given how short how short (~193,000 units) the actual total came to that estimate (despite being incredible impressive and outpacing the total sales of the rest of the global community combined), we tend to feel that 800k in 2017, with less incentives, has virtually no shot at happening.

But we aren't China, so we'd happily take a 150k miss on that number too!

source: Reuters