China Electric Vehicle Sales Growth Is Sparking Big Change

In recent years, China has proven to be one of the world leaders in the adoption of electric vehicles. And it turns out that 2021 was no exception. According to Wall Street Journal, “China’s car market suffered a three-year decline last year, helped by strong sales of electric vehicles.”

“Help for growth in China was robust sales of electric and plug-in hybrid cars, which last year accounted for 15% of total passenger car sales. Sales of these new energy vehicles more than doubled to 2.99 million vehicles… [EV] brands like Xpeng and NIO together with Tesla showed record sales last year, ”reports WSJ.

However, this was not the case for many gas-powered traditional automakers in China. “Volkswagen AG, the largest foreign brand in China, said its group sales in the country fell by about 14%. “Other older brands declined -” Nissan Motor Co.‘s sales fell 5.2%, and Honda Motor Co.has fallen 4%. “

Meanwhile, “US electric car maker Tesla sold more than 470,000 cars manufactured at its Shanghai plant last year, about a third of which were exported, data from the association showed. Tesla said last week that they will supply more than 936,000 vehicles globally in 2021. , “reports WSJ.

A look at Tesla’s performance in China (YouTube: Reuters)

Barrons reports, “Tesla delivered a record number of electric cars from its factory in China last month… Tesla’s sales in China were out of this world.”

So how good were the numbers? South China Morning Post reports, “Tesla delivered a record 70,602 vehicles in December in China, beating its previous record of 52,153 set in September. The automaker delivered 321,000 Model 3 and Model Y vehicles to customers in China last year, 117 percent higher than in 2020.”

These numbers were surprising, as Tesla actually is raised the prices of their Shanghai-made vehicles twice in five weeks. Why? “Tesla does not want to take too many orders, which is why it raised prices to limit demand,” said Phate Zhang, founder of the Shanghai-based technology portal CnEVpost.

Looking ahead at China’s overall car sales forecast for 2022, according to WSJ, “Any growth is likely to come from sales of electric cars, with analysts and industry executives expecting sales of cars with internal combustion engines to remain unchanged or decline slightly this year.”

Originally published on EVANNEX.

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