roulettenearme|Economic Watch: China's auto sector sustains expansion in Jan-May, NEV boom continues

14 06

BEIJINGroulettenearme, June 14 (Xinhua) -- China's auto market maintained sound growth momentum in the first five months of this year, with its fast-growing new energy vehicle (NEV) sector continuing to thrive and auto exports increasing.

From January to May, auto sales in the world's largest auto market rose by 8.3 percent year on year to nearly 11.5 million units, data from the China Association of Automobile Manufacturers showed Friday.

In May alone, auto sales reached approximately 2.42 million units, up 1.5 percent year on year. On a monthly basis, the May output went up by 2.5 percent.

In the January-May period, the NEV sector sustained its stellar performance, amid China's continuous pursuit of green and low-carbon development.

The NEV output surged 30.7 percent in the first five months compared with the same period a year earlier to 3.93 million units, while NEV sales hit 3.9 million units, marking a rapid increase of 32.5 percent.

Such robust expansion had driven up the market share of NEVs to 39.5 percent in May, up from 36 percent a month earlier, the data showed.

The association attributed the NEV growth to the effects of a series of supportive measures recently, such as encouraging the replacement of traditional fuel cars with NEVs, promoting NEVs in the country's vast rural areas and lifting NEV-related purchase limits.

China has retained its top position worldwide in terms of NEV production and sales for nine consecutive years. As the country accelerates the pace of electrifying its auto industry, the NEV sector has a promising future.

roulettenearme|Economic Watch: China's auto sector sustains expansion in Jan-May, NEV boom continues

International Data Corporation (IDC), a global market research firm, said in a recent research note that the market scale of NEVs in China's passenger car market is expected to surpass 23 million units by 2028, with a compound annual growth rate of 22.8 percent.

A rapid increase in auto exports is another bright spot. China exported 2.31 million units of automobiles from January to May, jumping 31.3 percent year on year, the data showed.

A total of 1.79 million units of traditional fuel cars were exported in the first five months, soaring 37.5 percent year on year. The NEV exports came in at 519,000 units, rising 13.7 percent.

In the January-May period, exports of plug-in hybrid electric vehicles tripled from the same period a year earlier, while whose of pure electric cars dipped 1.8 percent year on year to 414,000 units.

Despite the upward trend in the auto sector, the association cautioned against headwinds facing the industry, including a relatively slow increase in domestic demand, fierce competition, and mounting protectionism in international trade.

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