As the epidemic and the Russia-Ukraine conflict have an influence on Europe, China strengthens its market-leading position in the New Energy Vehicle (NEV) sector. China contributed 59 percent of global NEV sales in the first half of this year, much more than either Europe or North America, according to figures from the China Passenger Car Association (CPCA).

The secretary-general of the CPCA, Cui Dongshu, recently published a piece on WeChat on the worldwide NEV industry. Cars with hydrogen fuel cells, plug-in hybrids, and battery EVs all fall under the NEV category.

In the first half of the year, China sold 2.51 million NEVs, accounting for 59 percent of the global market. In the first half of 211, the nation provided around 52% of global sales.

In contrast, Europe reported 1.09 million NEV sales in the first half of 221, accounting for 25.8% of the market. The US sold 500,000 vehicles, accounting for 11.8 percent of the market.

Cui claimed that China’s growing share was the result of stable supply and robust demand. Additionally, the market, rather than government programs or incentives, has increasingly been responsible for its sales rise.

However, the pandemic and the war’s effects on the supply chain have increased the strain on the Europe NEV market. The region had a 34.4 percent market share the previous year but struggled to capture one-third of the market in 1H22.

The US has maintained a 10% global market share while expanding its NEV market. Furthermore, with 1.3 percent and 0.8 percent of total NEV sales this year, respectively, South Korea and Japan still only contributed a small portion.

The Russia-Ukraine war reportedly hurt NEV sales in China in April but they rebounded in June, according to CPCA. As a result, the third and fourth quarters of 2022 are projected to see an increase in transactions throughout the nation.

According to the CPCA’s figures, the adoption of NEVs worldwide is growing and will reach 10% in 2022. The emphasis, though, is on adoption. For instance, Norway led the world with a penetration rate of 71%, while China and Germany only reached 22%. On the other hand, the rate was considerably lower in Japan, at approximately 2%, than it was in the US, where it was around 7%.

Cui predicts that the US market’s expansion will propel the global NEV market forward.

When examining market share data by automobile brands from the CPCA, Tesla came out on top with a 16 percent share, followed by BYD at 15.4 percent. Third and fourth positions went to SAIC Motor and Volkswagen Group, respectively.

Tesla announced 2Q sales of US$16.93 billion with a declining automotive gross margin of 27.9%. According to CNBC, competition for batteries and parts as well as inflation both had an impact on the gross margin.

Tesla has entered into new, long-term agreements with Zhejiang Huayou Cobalt and CNGR Advanced Material in order to assure material supply in response to the soaring demand for batteries. According to Bloomberg, the two Chinese companies are Tesla’s current suppliers. They will give the EV firm ternary precursor materials till 2025.

In addition, Volkswagen observed a 27 percent increase in the delivery of all-electric vehicles in 1H22. Its monthly production run-rate declined in the second quarter due to the COVID-related lockdown in China, but it increased in June.

The second-largest BEV market in terms of sales, behind the United States, is China, which accounted for 29% of all BEV sales in the first half of this year. In the region, Volkswagen supplied 63,500 BEVs, a more than threefold increase from 1H21.


China Passenger Car Association, August 2022 compilation; DIGITIMES Asia


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