Domestic NEV Sales Soared in February, but Uncertainties over Demand Loomed Larger

SHANGHAI, Mar 15 (SMM) - In February, 450,000 new energy vehicles were insured in China, a sharp increase of 84% from 250,000 units in the same period last year and an increase of 56% from January. In terms of fuel type, the sales of battery electric vehicles (BEV) rose 53% MoM and 48% YoY to 278,000 units, accounting for 62% of the total sales. The sales of plug-in hybrid electric vehicles (PHEVs) gained 59% MoM and soared 199% YoY to 174,000 units, accounting for 38% of the total.

Judging from the data, end-user consumption saw a better recovery in February despite the fewer working days in the month. The sales of 450,000 new energy vehicles marked a return to the level of October last year.

In terms of performance of car makers, the top 15 companies sold a combined 437,000 NEVs in February, up 72% MoM and 118% YoY, dominating 97% of the market share, up from 88% in the previous month.

BYD topped the list by selling 146,000 units, an increase of 18% month-on-month and 119% year-on-year, with a market share slightly down to 32%. GAC notched the second place by selling a total of 62,000 passenger cars, a month-on-month increase of 534% and a year-on-year increase of 587%. In February, Tesla sold 34,000 vehicles in China, a month-on-month increase of 25%, and a year-on-year increase of 41%. It is worth noting that sales of Geely Automobile also increased significantly in February to 25,000 vehicles, up 84% month-on-month and 147% year-on-year. In particular, Geely's newly launched car model A00-class Panda MINI saw explosive sales in February at 7,019 units, a sharp increase of 737% from the previous month, and became the best seller in Geely by surpassing Jikr 001.

On the other hand, the sales of many car models in February also increased steeply from the previous month. Among them, after a drastic drop in sales in January, Hongguang Mini embraced sales of 30,228 units in February, an increase of 9% year-on-year and a spike of 68% month-on-month, which dominated the sales list in February again. A total of 25,789 units of Tesla Model Y2 were sold, up 79% MoM and 35% YoY, making it the second best sold car model. BYD Song PLUS ranked first with a sale of 25,736 units. It is worth noting that BYD Song PLUS is the only car model among the top five whose sales declined month-on-month.

In general, the NEV sales were on an upswing in February, which was in line with expectations. This is because some NEV distributors resumed operations in February after the Chinese New Year holiday, and thus the production and sales improved on the month. In addition, the sharp price cuts offered by some car companies such as Tesla also beefed up the purchasing demand for NEVs when the impact of NEV subsidy removal gradually faded away.

For the market outlook, the domestic economy has been slightly weak, the upcoming stricter carbon emission requirements on cars have forced some fuel car producers to significantly reduce the prices to promote sales and clear their stocks, which may bring about some uncertainties to the NEV market. Nevertheless, the favourable policies have been rolled out across many places to promote auto consumption and encourage the development of new energy vehicles. The government support for NEVs suggests that NEV demand is likely to rise further in March.