Employees work at Dayun's new energy vehicle final assembly line in Yuncheng, Shanxi province, on Thursday. China is expected to make up 60 percent of global NEV sales, which are expected to surpass 20 million units in 2024. (YAN XIN/CHINA DAILY)
China is poised to remain the world's largest market for new energy vehicle sales this year, while accelerating its role as the global hub for batteries and related supplies, experts said, adding that the NEV sector will continue to drive investment, consumption and economic growth in the country.
The latest predictions from electric vehicle industry think tank China EV100 showed that global NEV sales are expected to surpass 20 million units in 2024. China is expected to make up 60 percent of the total, with sales value surpassing 2 trillion yuan ($279 billion).
Moreover, in 2024, total output of NEV batteries and materials in China is likely to account for over 50 percent of the global total.
"China's huge market potential and technological advances make it an important force driving the industry's development globally. Continuous tech breakthroughs will also give rise to new brands. It is anticipated that one or two more Chinese NEV brands will enter the global Top 10 list in terms of sales volume this year, boosting the share of Chinese firms to over 40 percent," said Shi Jianhua, deputy secretary-general of China EV100.
"The rapid NEV development will continue to drive growth in sectors like infrastructure, automotive parts, smart manufacturing and intelligent automotive solutions, and inject impetus into China's economic growth," Shi said.
"The industry will also contribute to the country's low-carbon transition. It is estimated that this year, China's total number of NEVs in use will approach 30 million units, with pure EVs accounting for about 80 percent. It is estimated that emission reductions resulting from replacing fossil fuel cars with NEVs in 2024 will exceed 100 million metric tons," he added.
Shi said over the past year, China led global production and tech advances for batteries, motors and intelligent cabins. Energy density of battery cells currently in mass production hit 300 watt-hours per kilogram, supporting an average range of over 460 kilometers per charge for an EV.
The China EV100 data showed that as of September, global NEV sales were around 9.75 million units, with China contributing over 60 percent of the total. Chinese brand BYD emerged as the world's largest in terms of new energy passenger vehicle sales by the end of September. Chinese companies secured five positions in the global Top 10 list in terms of sales at that point, collectively accounting for 38.9 percent of global market share.
"NEV manufacturers are actively expanding battery production to lower costs, ensure supply and amplify synergies within the industrial chain. While innovating technologies, they also ramped up efforts to develop products with different characteristics. Nevertheless, the industry faces temporary challenges of excess capacity and structural imbalances, necessitating comprehensive strategies from the government to guide orderly development," said Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers.