BEIJING — In 2024, the sale of all varieties of electric vehicles (EVs) in China surged by over 40%, while sales of gasoline-powered vehicles dropped significantly, according to industry statistics released on Monday.
Last year, a total of 31.4 million vehicles, including buses and trucks, were sold in China, marking a 4.5% increase compared to the previous year. The China Association of Automobile Manufacturers noted that this growth in sales surpassed the production increase, which was recorded at 3.7%.
Moreover, China’s exports of passenger cars experienced nearly a 20% growth in 2024, amounting to nearly 5 million vehicles. This rise has played a significant role in boosting China’s overall export figures.
Within these exports, the category known as “new energy vehicles,” which encompasses fully electric battery cars, fuel-cell vehicles, and plug-in hybrids—electric cars that also have a gasoline engine—saw an increase, reaching 1.28 million units. This marks a 6.7% rise compared to 2023.
The international expansion of Chinese EV manufacturers has raised concerns among automotive companies in the U.S. and Europe. In response, the U.S. imposed a 100% tariff on electric vehicles produced in China last year, while the European Union implemented tariffs on Chinese EVs, claiming they benefited from unfair government subsidies.
On the home front, December saw a 13.6% rise in passenger car sales, largely propelled by trade-in rebate initiatives, leading to an overall yearly increase of 3.1% in passenger vehicle sales in China, amounting to 22.6 million units.
Plug-in hybrids gained the most traction in 2024, appealing to a new generation of EV consumers who either have reservations about fully electric vehicles or are attracted to the extended range that hybrid models offer.
In contrast to the rapid growth of EV sales in China, both the U.S. and Europe are witnessing a deceleration in growth rates.
Sales of traditional gasoline and diesel vehicles fell by 17% in 2024, decreasing from 14 million to 11.6 million. These vehicles now constitute 51% of the total new car sales.
The declining demand for fuel-powered vehicles has been particularly detrimental to foreign manufacturers like Volkswagen AG and Nissan Motor Corp., which have historically depended on robust sales in China to support their profits. These companies are now striving to develop electric vehicles suitable for the Chinese market. Recently, Honda and Nissan have announced plans to pursue a merger, partly to tackle the rising competition from domestic EV manufacturers in China.
