© Reuters. FILE PHOTO: Cars drive on the road during the morning rush hour in Beijing, China, July 2, 2019. REUTERS/Jason Lee
BEIJING (Reuters) – China’s new energy vehicle (NEV) sales fell 18.6% month-on-month in January after the country slashed subsidies for new energy vehicles by 30%, according to industry data released on Friday.
According to data from the China Association of Automobile Manufacturers, sales of new energy vehicles in January were 431,000, a year-on-year increase of 135.8%, including pure electric vehicles, plug-in gasoline-electric hybrid vehicles and hydrogen fuel cell vehicles. ).
Sales surged in December as buyers rushed ahead of subsidies cuts in January, Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), another industry group, said on Monday.
In December, the sales volume of new energy vehicles in my country was 518,000, a year-on-year increase of 159.5%.
As part of efforts to reduce air pollution, China has ambitious targets to promote new energy vehicles and believes the industry is mature enough to be driven by demand rather than subsidies.
Total vehicle sales in the world’s largest auto market rose 0.9% year-on-year to 2.53 million units in January, the first increase after eight straight months of declines, according to CAAM.
In January, demand continued to increase ahead of the Chinese New Year and chip supply continued to improve, CAAM said in a statement. But he added that sales growth had slowed due to the impact of the Covid-19 outbreak in some regions.
A global shortage of chips in everything from brake sensors to power steering and entertainment systems has led global automakers to cut or suspend production, driving up prices and hurting sales.
On Monday, CPCA data showed that U.S. electric car maker Tesla (NASDAQ: ) Inc sold 59,845 Chinese-made vehicles in January.
Due to fierce competition, Tesla is the only foreign automaker among China’s top 10 new energy vehicle brands, as local manufacturers such as NIO (NYSE: NIO), Xpeng Motors (NYSE: Inc and Li Auto) are targeting Chinese consumption , and more for the local custom product taste.