China becomes first country to surpass 1 million electric vehicle sales in a month

China’s electric vehicle sales grew 33% year-on-year, driven by trade-in subsidies

While slowing growth in electric vehicle sales has caused concern in the West, China continues to see positive results. According to a recent report, China has become the first country in the world to record a single month of more than 1 million electric vehicle sales in August. Compared to last year, China’s electric vehicle sales growth has increased by 33% so far.

Meanwhile, EV sales in Europe turned negative for the first time, with both the EU and the UK seeing a 4% decline. There are a number of reasons for the contraction, including the removal of subsidies in countries such as Germany, while trade restrictions imposed by the EU on Chinese EVs may also have had an impact.

Read: EU cuts tariffs on Tesla, Geely again, but China hopes to resolve dispute through negotiations

Data reported by research institutions Rho Movement The report shows that global demand for electric vehicles continues to grow, with EV sales reaching 9.8 million units by August 2024, a year-to-date (YTD) growth of 20%. The report said that EV sales growth of 9% in the United States and Canada was considered “solid,” but its future trend may depend on the outcome of the November presidential election.

China electric vehicle sales rise, overall auto sales fall

While demand for electric vehicles continues unabated in China, this does not tell the whole story for the country’s passenger car market. In August, total sales of vehicles of all engine types fell 1.1% to 1.92 million units, according to the China Passenger Car Association (CPCA).

According to a report ReutersSales of new energy vehicles (NEVs), which include both pure electric and plug-in hybrid models, have benefited from government subsidies for trading in more polluting vehicles. Those who choose to trade in a fuel-powered car can receive a subsidy of up to RMB 20,000 (US$2,800). For those who are not ready to switch to an EV or PHEV, the government also offers a separate subsidy of RMB 15,000 (US$2,100) for trading in a fuel-powered car for a smaller one.

NEVS sales rose 43.2% and accounted for 53.5% of total passenger car sales, a record high. But since many of them were trade-ins, the data reflected weakening consumer confidence and a decline in the number of first-time car buyers.

But Charles Lester, data manager at Rho Motion, expects demand for electric vehicles in China to continue its upward trend. “China’s sales of more than 1 million electric vehicles in one month is just the beginning,” Lester said. “We expect this milestone to be reached multiple times before the end of the year, as sales typically surge in the second half of the year.”