Electric vehicle market share in China hits record 65.2 percent

In mainland China, the share of electric and plug-in hybrid cars in total sales rose to 65.2 percent last month, reaching a new record level. This surpassed the previous month's peak of 65.1 percent.

According to the data, nearly two-thirds of the 1.54 million cars sold last month were fully electric or plug-in hybrid models. During the same period, gasoline car sales fell by 40 percent year-on-year, highlighting the loss in the market.

Electric vehicle deliveries saw a 10.1 percent year-on-year decline. Despite this, the sharper decline in gasoline vehicles increased the share of electric and hybrid models in the total market. In the January-August period, the number of electric vehicles delivered by Chinese manufacturers to the domestic market was 6.67 million; this figure represents an 11.6 percent decrease compared to the same period last year.

FUEL COSTS INFLUENCE PREFERENCES

Rising oil prices following the Iran conflict in the Middle East stand out as one of the influential factors in consumers moving away from gasoline vehicles in China. While the price of a barrel of Brent crude oil is hovering around 97 dollars, this level is 34 percent higher than it was at the end of February, when the conflict began.

According to expert analysis, if the price of a barrel of oil remains around 90 dollars, the annual fuel cost for drivers using gasoline vehicles in China could increase by approximately 2 thousand yuan compared to pre-war levels. This situation makes electric alternatives appear more attractive in terms of total cost of ownership.

Although the Beijing administration has reduced some purchase subsidies and tax advantages for electric vehicles, demand has not completely weakened. While the state subsidy provided for a 100 thousand yuan electric vehicle was reduced to 12 thousand yuan, a 5 percent vehicle purchase tax was introduced for buyers.

Another factor supporting the momentum in the market is the expansion of charging infrastructure. As of the end of July, the number of public electric vehicle charging stations in China reached 5.1 million, an annual increase of 21.3 percent. Home charging units increased by 48.8 percent to approximately 18.6 million units.

News Source: 12punto