China new energy vehicle sales fell 42% YoY in November

SHANGHAI, Dec 10 (SMM) – China’s new energy vehicle (NEV) sales fell for a fifth straight month in November, suggesting that the winter of the whole NEV industrial chain is not over yet.

The China Passenger Car Association (CPCA) reported on Monday that wholesale deliveries of new energy passenger vehicles in China slumped 41.7% from a year ago to 79,000 units last month, marking the fifth consecutive month of year-on-year declines after the sharp cut on NEV subsidies went into effect in late June. The NEPV sales rose 15% from October.  

For the first 11 months of 2019, China’s NEPV sales amounted to 923,000 units, up 7.7% from the same period last year.

Beijing set the 2025 NEV sales target at around a quarter of all car sales in that year, according to a draft policy published by the Ministry of Industry and Information Technology last week. This was up from a target of more than 20% laid out in the last roadmap.

According to SMM data, 6.3 GWh of power batteries were installed into vehicles in November, up 54.1% month on month but down 24.7% year on year.

Ternary batteries accounted for 3.8 GWh or 60%, compared to a proportion of 74% in October. Capacity of installed lithium iron phosphate (LFP) batteries came in at 2.5 GWh, taking up 39% of the total, up from a ratio of 26% a month earlier.