NEV sales take off as China supercharges the burgeoning industry

An IM LS7 is displayed at the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 24, 2023. [Xinhua/Fang Zhe]

NANNING -- After several rounds of window-shopping at various dealerships, adding over a dozen sales managers to her social media, and comparing prices across different online and offline sales channels, Li Meijun finally placed her order for factory-fresh new-energy vehicle (NEV).

"There are no regional price differences, as it's mostly free of purchase tax and service charges," said Li, a 31-year-old resident of Nanning, the capital of south China's Guangxi Zhuang Autonomous Region. "The motor, battery and electric control system are all supported by lifetime guarantee, and the seller is also giving away unlimited cellular data. All things considered, it's good value for money."

Encouraged by official policies supporting the emerging industry, China has topped the world in the volume of NEV production and sales for eight consecutive years. China's NEV sales rose from 1.37 million in 2020 to 6.89 million in 2022, according to official statistics.

In the first five months of this year, the production and sales of NEVs in China rose 45.1 percent and 46.8 percent year on year, respectively. The NEV sales accounted for nearly 28 percent of the total car sales in the country.

New energy vehicles are seen charging at a service area along the Guangzhou-Shenzhen expressway in south China's Guangdong Province, Oct. 27, 2022. [Xinhua/Li Jiale]

On June 21, China unveiled a plan to further extend the preferential purchase tax policy for NEVs to the end of 2027.

A post-pandemic rebound in consumer confidence, coupled with the preferential terms provided by policy measures and carmakers, have seen a rise in the number of people intending to buy NEVs in China.

"We have seen a lengthy stream of people come in, between 4,000 and 6,000 per day, and the vast majority of them are looking for NEV options," said Pan Yiyun, a deputy manager of a major car retail platform in Nanning.

According to a report issued by the International Energy Agency (IEA), China accounted for 60 percent of global electric car sales in 2022, and is the front-runner among the three biggest markets in which the overwhelming majority of NEV sales have taken place. "Today, more than half of all electric cars on the road worldwide are in China," says the report.

One major hindrance to EV adoption across the globe has been "range anxiety" -- the NEV driver's fear that the battery will not have sufficient charge to complete a long journey.

In a bid to promote the adoption of NEVs and help their owners overcome this anxiety, China has sped up the construction of a vast network of charging facilities, with over 6.36 million stations already built by the end of May this year.

"Theoretically, the range of my battery-driven car is 700 km, so it's more than enough for simply traveling to and from work daily", said Zhou Hai, an NEV owner from Nanning. "Fully charged, I can do a round trip of 200 km plus to the coastal city of Beihai without plugging in. Even if the battery does run out of power, charging stations are available in the urban areas."

"In the grand scheme of things, the growth momentum of China's NEV industry remains very robust", said Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers. "The advances in NEV battery technology and the drop in prices have certainly made NEVs more attractive to customers."