Chinese Car Buyers Recently Scooped Up More EVs and PHEVs Than Gas Vehicles for the First Time

Electric vehicle market share is growing in the U.S., but it hasn’t climbed anywhere near the heights seen in other markets. Chinese car buyers are among the most prolific EV and PHEV buyers in the world, and the country recently saw their sales numbers eclipse those of gas vehicles for the first time.

China refers to the two vehicle types as “new energy vehicles,” or NEVs. Their July sales increased 37 percent over July 2023, accounting for almost 51 percent of new car sales. The numbers also represent a 28.6 percent jump between June and July of this year.

That growth is mainly due to the country’s leaders’ aggressive incentive and infrastructure development. The cash incentives for electric vehicles doubled in July, and the government made the deal retroactive to April, so earlier buyers qualify for extra cash back. Buyers do not pay sales tax on NEV purchases, and people who replace gas cars with an electrified model can receive a scrappage credit.

The Chinese government’s propping up of EV production and sales aims to help reduce air pollution and the country’s appetite for imported oil. It also helps the economy, creating new jobs and in-sourcing materials from within China rather than relying on foreign components.

As a result, China’s impact on global EV markets can’t be understated. Chinese brands don’t yet sell in the U.S., but they’re in Mexico and may soon be available in Canada, though some in its government want strict tariffs like the ones implemented by the White House.

[Images: tinhkhuong/Shutterstock.com]

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