Sales of electric vehicles in China surged by more than 40% last year, while gasoline-powered car sales experienced a significant decline, according to industry data released on Monday. The China Association of Automobile Manufacturers reported that a total of 31.4 million vehicles, including buses and trucks, were sold in China in 2024, marking a 4.5% increase from the previous year. This growth in sales outpaced production, which rose by 3.7%.
China's exports of passenger cars also saw a notable increase, rising by almost 20% to nearly 5 million vehicles in 2024. Notably, exports of 'new energy vehicles,' which include pure battery electric vehicles (EVs), fuel-cell cars, and plug-in hybrids, reached 1.28 million units, marking a 6.7% increase from 2023.
The expansion of Chinese EV manufacturers into international markets has raised concerns among automakers in the U.S. and Europe. In response, the U.S. imposed a 100% tariff on China-made electric cars, while the European Union introduced new tariffs on Chinese EV makers, citing unfair government subsidies.
Domestically, sales of passenger cars in China saw a 13.6% increase in December, driven in part by trade-in rebates. Overall, sales of passenger cars in China rose by 3.1% in 2024, reaching 22.6 million units.
Plug-in hybrids experienced the most rapid growth in 2024, attracting a new generation of electric vehicle buyers who may be hesitant about purchasing pure EVs or are seeking the extended range that hybrids offer.
Meanwhile, the U.S. and Europe have seen a slowdown in EV sales growth, with traditional gasoline and diesel vehicle sales dropping by 17% in China in 2024, accounting for 51% of overall new car sales.
This decline in demand for fuel-powered cars has posed challenges for foreign automakers like Volkswagen AG and Nissan Motor Corp., which have traditionally relied on strong demand in China to boost their profits. These companies are now racing to develop electric vehicles tailored to the Chinese market, with Honda and Nissan recently announcing plans for a merger to address the competitive landscape.
